Calderprint has completed the £932,000 purchase of the buildings and assets of historic printer Hudson and Pearson, creating twenty new jobs.
Following a Lancashire Business Growth Fund grant, Calderprint has acquired assets
relating to Hudson & Pearson, which was placed into administration in November 2015. NatWest bank has provided the remaining funds.
Calderprint owner and managing director Peter Birbeck has already restarted the presses at the Hudson & Pearson site in Dunnockshaw, near Burnley.
David Sharpe of Pierce Group was involved in the fund raising for the acquisition, which included dealing with the bank Natwest on the term debt, and also the Lancashire Business Growth Fund on grant funding for the deal. LBGF is administered by the East Lancs Chamber of Commerce and the funding provided is linked to job creation. £186,400 of grant funding was obtained with the balance of funds being provided by Natwest.
Mark Maden Wilkinson, director of Pierce, negotiated the deal terms with the
administrators for Hudson and Pearson, BDO. Assistance on land valuation was provided by Landwood Group.
Major banks and financial institutions are among the clients at Calderprint, which operates 16 presses at sites across Lancashire and aims to boost staff levels beyond 100 people.
David Sharpe is Director of Pierce Corporate Finance at Pierce Corporate Finance, part of the Pierce Group of Companies, based in the NW of England. He is a lead advisor on M&A activity across the firm, and together with John Green, Chairman of Pierce, Pierce Corporate Finance is an award winning CF team based in the NW. Here he talks to Finance Monthly about the intricacies of Calderprint’s purchase deal.
Please tell me about your involvement in this deal?
I was involved in the fund raising for the acquisition, which included dealing with the bank Natwest on the term debt, and also the Lancashire Business Growth Fund on grant funding for the deal. LBGF is administered by the East Lancs Chamber of Commerce and the funding provided is linked to job creation. £186,400 of grant funding was obtained with the balance of funds being provided by Natwest. What challenges did you face and how did you overcome them? This was a deal which had to be delivered on tight timescales due to the distressed nature of the Hudson and Pearson Business. The business plan had to be written and negotiations completed with funders within a short timeframe in order to capture the business and maximise return on investment.
Why is this a good deal for all involved?
This is an excellent deal for Calderprint which is expected to boost turnover for the company to over £10m and for the local economy with over 20 new jobs created. Also a great deal for Pierce Corporate Finance to be involved in. Have you been involved in any other major deals this year? Since the turn of the New Year we have completed an MBO in Leicestershire, deal value £2.2m Also we recently completed a land and property purchase in London, deal value £9m. We are also advising Calderprint currently on 2 further acquisitions. What do you feel the next year holds for the M&A sector in your jurisdiction? The local Corporate Finance community in East Lancs is vibrant, as evidenced by the local CF forum, supported by the major firms in the area including Pierce. Deal activity is strong on all fronts.