Investec Growth & Acquisition Finance Backs 2M Buyout

UK mid-market specialist Investec Growth & Acquisition Finance has provided the debt facility to support the buyout of 2M Holdings Limited, the owner of chemicals distribution businesses Surfachem and Banner Chemicals, by chairman and co-founder Mottie Kessler. 2M is headquartered in Runcorn and operates from Halifax, Leeds, Middlesbrough and Liverpoo. The company was formed in 2003 by Mottie Kessler and Ieuan Thomas with the objective of growing a portfolio of companies in the chemicals distribution sector.

PRESS RELEASE

Investec Growth & Acquisition Finance (“Investec”) has provided an innovative debt facility to support the buy-out of 2M Holdings Limited (“2M”), owner of chemicals distribution businesses Surfachem and Banner Chemicals, by Chairman and co-founder Mottie Kessler.

2M was formed in 2003 by Mottie Kessler and Ieuan Thomas with the objective of growing a portfolio of companies in the chemicals distribution sector. Its business activities started with the acquisition of Liverpool-based Banner Chemicals in 2004 followed by the subsequent acquisitions of MP Storage in 2006 and Leeds-based Surfachem in 2007. 2M is headquartered in Runcorn and operates from Halifax, Leeds, Middlesbrough and Liverpool. It employs almost 200 staff and generates revenues of over 100 million pounds ($157.8 million).

Having concluded that 2M’s long term growth plans would benefit from his full ownership, Mottie Kessler completed the purchase of the shares of 2M’s co-founder Ieuan Thomas with the support of Investec’s debt package.

Investec utilised a blend of amortising and revolving debt, delivering funding for the share purchase and group refinancing while also providing a framework to support working capital, investment and acquisitions.

Mottie Kessler, Chairman of 2M commented: “We discussed the transaction with a number of providers and found Investec to be the most personal and business minded of all.”

Tristan Nagler of Investec commented: “We are delighted to support Mottie Kessler on a transaction that maintains 2M’s future independence. We are highly supportive of his growth and acquisition plans for the group and look forward to a long association. This transaction is another example that Investec is increasingly viewed as the destination of choice for mid-market entrepreneurs.

“We are strong supporters of entrepreneurs and believe that, in the near term, an increasing number of mid-market companies are going to require innovative funding structures. During the last 12 months we have completed a number of financings for mid-market companies in the 5 million pounds and 65 million pounds range.”

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For further information please contact:

Investec Specialist Private Bank 020 7597 5178
Tristan Nagler
Hannah Schaller

Citigate Dewe Rogerson 020 7638 9571
Patrick Evans
Jamie Brownlee

NOTES TO EDITORS:
Growth & Acquisition Finance is a division of Investec Specialist Private Bank. It works with entrepreneurs, management teams and private equity houses to provide finance to UK mid-market companies. Their flexible solutions cover the entire capital structure offering asset based and cash flow senior lending, mezzanine finance and minority equity on either a standalone or integrated basis. They are a single, empowered and responsive team focussed on making deals happen and building strong relationships with clients.

Investec Specialist Private Bank is part of the Investec Group which operates out of London, the Channel Islands, Switzerland, Ireland, South Africa and Australia, offering both onshore and offshore services. Investec Specialist Private Bank has developed a real affinity with the entrepreneurial class and our experience places us right at the heart of this unique business community. We have created an environment that helps make things happen: propelled by a successful track record and market-leading expertise.

Our areas of specialisation include Structured Property Finance, Banking Services, Specialised Lending, Trust and Fiduciary services, and Growth & Acquisition Finance.

Investec Specialist Private Bank is a division of Investec Bank plc, which is authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange.

This press release is issued on behalf of Investec Bank plc. Registered address: 2 Gresham Street, London, EC2V 7QP. (Reg No. 489604).

2M is the holding company of Banner Chemicals and Surfachem. Banner is a leading UK-based chemical distributor formed in 1860. It supplies a large client base with an extensive range of solvents and specialty chemicals to chosen market sectors. Its service offering ranges from chemical distribution to the processing, packaging and blending of chemical products. Surfachem is a leading, UK based, global distributor of speciality chemicals formed in 1981.