Quercus Corporate Finance has announced the arrival of Jim Clark as an Associate Partner to support ongoing growth in demand for its services. Jim is the firm’s third senior appointment in two months, with Tully Cornick having previously joined as an Associate Partner and Michael Mortimor having been promoted to partner.
Jim is an experienced dealmaker who brings a wealth of M&A and advisory experience having worked in Corporate Finance for 25 years. He qualified as a Chartered Accountant with EY and subsequently worked for KPMG in their Transaction Services team before specialising in Lead Advisory. Jim has a track record of success supporting entrepreneurs, management teams, private equity houses and corporates.
Speaking about his new role, Jim said:
“Quercus is a byword for quality and excellence in M&A and I am delighted to be joining a team with such a strong track record of delivery. I’m in no doubt that 2023 will be a busy year despite the short-term inflationary headwinds. Speaking to my clients it is clear that there is capital and appetite in large supply, particularly among private equity firms and I expect buyers will continue to pay a premium for quality businesses.”
Andrew Clegg, Quercus Partner, added:
“Jim’s appointment is the next step in our strategy to build a world-class advisory firm. He has a track record of success and is exceedingly well connected. Jim’s experience will be invaluable in the year ahead as our clients seek to meet the demands of today’s economic climate, whether that be with their growth plans, accessing new sources of funding or planning for exit.”
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”
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.
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.
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.
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.”
The Terra Alliance held its 40th international M&A conference last week in Chicago, hosted by North American member firm, Origin Merchant Partners. The meeting marked the 20th anniversary of the Alliance which was originally formed in Europe in 2002.
Over the course of two days over 30 delegates, representing 13 member firms, dived into global economic and commercial trends and explored the impact on local markets. Of most significance were the discussions about cross-border M&A opportunities and how the Alliance’s reach could most effectively support each other.
The network delivers consistently high levels of cooperation and over the past five years member firms have completed 515 transactions with a combined value of $112 billion.
The next Terra Alliance conference will be hosted by Italian member firm, Banca Sella Group, in Milan in Spring 2023. Banca Sella is one of Italy’s largest banks.
About The Terra Alliance
Formed in 2002, The Terra Alliance consists of 13 investment banks and independent advisory firms with coverage of more than 40 countries and offices on six continents. It is a highly effective network, characterized by strong cooperation between the member firms, and a long track record of transaction success. The Alliance meets formally every six months to originate cross-border M&A and to enable members to share local knowledge and perspectives. More details can be found at http://www.terra-alliance.com
