Sunbury: Mundays, Menzies advise Kem Edwards sale

Mundays LLP and Menzies Corporate Finance have successfully

advised and supported the shareholders of Kem Edwards in

the multi-million pound sale of the entire issued share capital of the company to FTSE top 150 company, SIG Plc.

Kem Edwards is an industry-leader in the supply of tools, fixings, site equipment, mechanical and electrical components and offers an off-site pre-fabrication service to the construction industry. The company has been in business for nearly 40 years and is headquartered in Sunbury-on-Thames.

With annual sales of £2,455.2m (2007) SIG plc is the leading

European supplier of insulation, interiors, roofing and specialist

construction products. The company operates from 15 European

countries, serving its customers from over 800 prime trading locations.

As part of the acquisition, Richard Edwards will continue his work for the company in the role of managing director.

The Mundays team was led by Alex Young (Corporate), assisted by

Kate Galloway-Hale (Commercial Property) and Nick Atkins

(Corporate).

Alex Young of Mundays said: “The sale presented a number of challenges with a grant of probate and detailed property arrangements required. It was a pleasure working with Menzies again and providing tailored advice to meet the clients’ deadlines, as both our firms specialise in advising owner management businesses.

By understanding the culture of the business and preparation, our firms were able to negotiate a smooth handover for the private

company becoming part of a plc group in terms of transitional

arrangements.”

The Menzies team was led by Steve Mitchison, assisted by TerenceGale, Richard Godmon (Tax) and Jackie Richmond (VAT).

Menzies project managed the transaction, valuing the company’s shares and advising on the tax issues arising from the sale, working closely with Mundays. Advice was given by obtaining a grant of probate to complete the sale, and the transaction was handled in such a way as to be able to complete within a timeframe that enabled the sellers to take advantage of the pre-5 April 2008 capital gains tax regime.

Commenting on the transaction, Steve Mitchison said: “There are strong synergies between Kem Edwards and SIG plc, and the Kem Edwards brand will add further value to SIG’s own strong market position. We have represented the seller for many years, and are pleased to have been able to offer advice and support throughout the lifecycle of the business and to have now helped in realising the true value of a very strong and respected business.”