Quercus Corporate Finance is delighted to announce that Michael Mortimor has been promoted to the partnership as head of Industrial Technology.

Michael has spent over 20 years specialising in Industrial Technology M&A and has completed transactions in the UK, North America, Europe, Russia and China. His clients have included corporates, private equity houses and owner-managed businesses. In 2022, Michael led the Quercus teams which sold Keronite, a surface treatment business, to Curtiss-Wright Corporation in the USA and Wixroyd, a specialist components supplier, to Essentra Plc.

Michael started his career at KPMG Corporate Finance and rose to co-lead their Diversified Industrials M&A team in London. During this time, he advised on some of KPMG’s most high-profile transactions. He subsequently held senior strategy, M&A and finance roles at Smiths Group Plc and McLaren Automotive prior to joining Quercus in May 2021.

Michael said:

“I am delighted to be joining the Quercus partnership to lead the firm’s growth plans in the Industrial Technology sector.  We have been extremely busy over the past 18 months and believe there is significant potential to build on this success in the coming year. I look forward to building new relationships and providing excellent service to our growing client base.”

Nick Standen, Quercus Chairman, added:

“While we regularly welcome colleagues from outside the firm, it is particularly satisfying to be able to promote exceptional talent from within. I am therefore delighted with Michael’s appointment. He is renowned for the depth of his sector knowledge and sets the standard for dedication and commitment to his clients. Michael’s appointment reflects our ambition to expand our Industrial Technology practice and to continue to build a world-class advisory firm.”

The Quercus team, led by Michael Mortimor, Andrew Clegg and Mark Winkler, have advised the shareholders of Wixroyd Holdings Limited (the “Wixroyd Group”) on the sale of the company to Essentra Plc (Essentra).

Based in Chichester, the Wixroyd Group has three leading UK brands of differentiated mechanical components. With a 70 year history, it has a reputation for high quality “c-class” components delivered with an excellent level of service to its 9,000 customers. The Wixroyd Group manufactures and supplies one of the broadest ranges of innovative mechanical components, with a strong product portfolio of over 100,000 products available across the online range providing solutions for product design and engineering challenges.

The acquisition is Essentra’s first since it outlined its new strategy as a pure-play components business. The acquisition of Wixroyd Group expands Essentra’s capabilities in hardware components and creates significant additional cross-selling opportunities across a range of Essentra’s current end markets

The consideration payable for the Wixroyd Group comprises an initial Enterprise Value of £29.5m and up to £7.0m deferred earn-out consideration linked to revenue performance in FY23.

Marcus Iafrate, CEO of Wixroyd:

“The achievements of the Wixroyd team, and the role our products have played in enabling design engineers across the UK to innovate and solve countless engineering challenges, has been a great source of pride for me and my brother Anthony as we have guided the Wixroyd Group over the last 30 years. Throughout the process, Mike and Quercus have demonstrated a deep understanding of our business and the sector in which we operate. This has been combined with high quality advice and service throughout. We are very excited about the enhanced opportunities that the combination with Essentra will generate”

Michael Mortimor, Associate Partner at Quercus said

“Having been owned by the Iafrate family since it’s foundation over 70 years ago, we are honoured to have been trusted by Marcus and his family to deliver a successful sale of Wixroyd. Under the leadership of Marcus and Anthony Iafrate, Wixroyd has delivered consistent growth and demonstrated outstanding margins. In Essentra, we are delighted to have found a strategic home for Wixroyd that can further accelerate its growth”                                          

Quercus Corporate Finance has advised the shareholders of Keronite Group Limited on the company’s sale to Curtiss-Wright Corporation for £29m.

Headquartered in the UK and with operations in North America, Keronite is a leading provider of Plasma Electrolytic Oxidation (PEO) surface treatment applications offering corrosion protection, wear resistance, thermal protection and electrical insulation for the defence, commercial aerospace and industrial vehicle markets, and also in semiconductor manufacturing.

Keronite’s proprietary PEO surface treatment process utilizes an environmentally friendly method of producing ceramic layers on light alloys such as aluminium, magnesium and titanium to enhance their inherent performance characteristics. Through Keronite’s process, lightweight metals are afforded the wear and performance properties of high-weight materials such as carbide or steel and are well-suited to support demanding applications in high integrity applications.

US-headquartered Curtiss-Wright is a global integrated business that provides highly engineered products, solutions and services, mainly to aerospace & defence markets, as well as critical technologies in demanding commercial power, process and industrial applications. Keronite will operate within Curtiss-Wright's Aerospace & Industrial segment and will increase the breadth of their surface treatment services portfolio to provide unique and complementary coatings technologies.

Nick Habgood, Azini Capital Partners said:

“We have thoroughly enjoyed the journey with Keronite and its sale represents a good result for the company’s shareholders, including Azini Capital. We wish Matt and the team the very best of luck as they embark on the next stage of the company’s development.  Quercus have been very good partners throughout and Mike’s sector knowledge, international connections and creativity were of great value to us throughout the process.”

Matt Hamblin, CEO of Keronite added:

“Keronite represents a great fit for Curtiss-Wright and we are very excited about the enhanced opportunities that the combination will generate. Mike has been a great support to me and his attention to detail and commercial experience have been a real help from start to finish” 

Michael Mortimor, Associate Partner at Quercus said:

“The cross-border nature of this deal represents a vote of confidence in the British economy and we are delighted with the outcome.  It has been a real pleasure working with Nick and Matt, and under their stewardship Keronite has successfully developed, industrialised and commercialised PEO technology and become a highly successful business.”

UK advisory firm, Quercus Corporate Finance has jointly advised the board of EnviroServ, South Africa’s largest waste management company on the signing of a binding agreement to be acquired by a consortium led by Suez.

The acquisition, which is subject to South African competition authorities’ approval, will enable the Suez led consortium to become a leading waste management player in South Africa.

EnviroServ is headquartered near Johannesburg, with regional facilities across South Africa. It is also active in Mozambique and Uganda. It was founded in 1979, and collects, treats, and disposes of general and hazardous waste, with treatment and disposal facilities across South Africa, Mozambique, and Uganda. It has a staff of 2,200 people and a turnover of nearly £70 million and is the only player in South Africa with full national coverage and a complete service offering. EnviroServ has an extensive customer base across a range of sectors including petrochemicals, manufacturing, metallurgical and mining sectors, as well as serving local authorities.

The acquisition will be made through a special purpose holding company, owned Suez 51%, RBH 24.5% and AIIM’s IDEAS Managed Fund 24.5%.

Mark Whelan, partner at Quercus, commented:

“We have been delighted to work with our co-advisors, Rand Merchant Bank, on this landmark transaction in the South African waste market. EnviroServ is a great company with well managed facilities and will provide the Suez led consortium with a sound entry into the waste market in South Africa and surrounding countries and its extensive experience and knowledge will help EnviroServ to further develop sustainable waste management solutions for its customers.”

Quercus Corporate Finance is delighted to announce that Dane Houlahan has joined the firm as a Partner, with a focus on Business and Technology Services M&A as well as Built Environment transactions.

Dane previously held senior M&A positions in KPMG’s Corporate Finance business including UK Head of Business Services, Co-Head of Complex Real Estate and Head of the London and Home Counties region.  Over a 20+ year career, he has also worked with Zeus Capital, a capital markets and IPO boutique mid-cap investment bank, and Zenzic Capital, a specialist debt advisory firm.

He has significant experience providing strategic advice to both listed and unlisted companies, government and private equity.  Dane has advised on a large number of founder led disposals, often MBOs and is very well known to the mid-market PE community

Dane is a qualified lawyer and chairs several businesses within the Business Services and Built Environment sector which brings a unique operator / investor / industry perspective. These include being non-executive chair for construction group, Real Places, and housebuilder, Antler Homes.

Nick Standen, Quercus chairman said:

“I have known Dane for nearly 20 years and very few advisers can match the depth and breadth of his industry contacts. He has worked on some of the most important deals in Business Services and Real Estate over the past few years and I am confident that his relationships and experience will be of enormous value to our clients.”

Dane added:

“For me there is an ever-growing need in the mid-market for high quality independent advice. Quercus has offered business-owners a clear alternative to more established mid-market players for nearly a decade now, and their success speaks for itself. Business Services and Real Estate are key strategic investment areas for the firm and the partners are ambitious to grow further. Joining up with many of my previous senior colleagues and friends is a natural move I have wanted to do for some time. I am excited about working with the team to help further expand the franchise and range of clients we can serve.”  

This week we are delighted to share from our forthcoming publication ‘Moving Forward’ an interview with Keith Errey. Keith is the Co-Founder and CEO of Isansys Lifecare and in this article he discusses how Isansys’ Patient Status Engine technology is a “win / win” for hospitals on a global basis.

https://indd.adobe.com/view/034ad871-85c9-4e9d-afba-59f6895d09ed

Terra Alliance is pleased to announce the results of a record-breaking 2021 and its continued growing presence in the global M&A and corporate finance markets.  In 2021, its member firms completed 110 transactions with a combined deal value of more than US$69 billion. For the five years to December 2021, member firms completed more than 515 transactions with a combined deal value of US$112 billion. Sectors that fared particularly well include Consumer, Industrial, Technology and Services.

Quercus is the exclusive UK member firm of the Terra Alliance and Andrew Clegg, Quercus Partner, commented:

"Despite the global impact of Covid-19, member firms prospered in 2021 and these exceptional results represent an alliance record in terms of deal value. Looking forward, we believe the M&A market will remain resilient and we wish our international partners well for the year ahead."

About Terra Alliance

Terra Corporate Finance Alliance is a leading international alliance of mergers and acquisitions (M&A) and corporate finance advisory firms with operations in Africa, Asia, Europe, the Middle East, North America and South America. The alliance provides member firms with a comprehensive platform for offering clients enhanced identification of, and access to, potential transaction parties around the globe.  Terra Alliance was formed in 2002 and consists of 14 member firms covering more than 45 countries worldwide.

Rockport Software is a leading provider of Business Intelligence, Data Analytics and Information Modelling consultancy services. In this week’s extract from our forthcoming publication ‘Moving Forward’, Rockport’s founder Bob Logan discusses the importance of agility in navigating the fortunes of a smaller business and the need to be assertive in pursuing clear strategic goals.

https://indd.adobe.com/view/38e675a2-0615-4df8-b1a6-e3ed43884f8c

This week’s extract from our forthcoming publication ‘Moving Forward’ is an interview with Sukhbir Sidhu, the founder of Evergen. Sukhbir is a serial entrepreneur and reveals some of the challenges he has overcome to build the fastest growing solar energy company in the UK.

https://indd.adobe.com/view/efce0a47-4bdd-480e-82cd-91d275ed32c8