Wednesday, November 2, 2022

News: Rotherham manufacturer acquired


Rotherham manufacturing firm, CMD Ltd, has been acquired by industrial private equity investor, Rubicon Partners, for an undisclosed sum.

Eastwood-based CMD is a designer and manufacturer of power distribution and ergonomic solutions in the workplace and makes products such as workstation hardware and power track systems for use in the commercial office, retail and hospitality sectors. The company employs 158 people and has been a market leader of award-winning products and services since 1988.

The deal sees Rubicon return to CMD, a company it first acquired in 2000. CMD was the subject of a management buyout in 2008 and was acquired by American firm, IDEAL Industries Inc., in 2017. CMD posted a turnover of £20m for 2021.

RSM’s M&A and due diligence team supported the preparation of the carve out financials and a financial factbook, identified suitable purchasers, negotiated all aspects of the deal and project managed to completion on behalf of IDEAL. The transaction was led by corporate finance partner Helen Brocklebank, with support from Davin Kandola, Louise Berrie and James Smith; while Phil Parkes, Thomas Sinden and Jake Mallet provided due diligence advice.

Helen Brocklebank, corporate finance partner and head of M&A in the West Midlands at RSM UK, said: "This investment by Rubicon presents a successful exit for IDEAL who acquired the business in 2017. It enables CMD to push forward with its continued expansion of its innovative product ranges. As workers continue to return to offices, there is a renewed demand for high quality products and services to ensure workplace connectivity. The existing management team, led by Jon Holding, will lead the business, continuing to provide best in class customer service as it enters a new and exciting chapter."

The disposal of a non-core business by IDEAL enables the company to focus on its key markets of professional electrician products, high power density connectors and charging systems.

Steve Henn, CEO, at IDEAL Industries Inc., said: "As IDEAL focuses on driving growth in our key markets, it was important to find the right home for CMD to enable it to flourish. The company has an excellent pedigree of products and services, and the new owners see a clear opportunity to drive the business forward successfully as employees return to workplaces and offices."

Founded in 1993, Rubicon Partners is a private equity firm headquartered in London. The firm seeks to make majority investments through buyouts, carve-outs, and growth capital over the long term. The firm prefers to invest in companies from commercial products, energy equipment, manufacturing, clean technology, oil and gas, industrials, medical devices, and agricultural technology sectors in Europe and North America.

CMD Ltd website

Images: CMD


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