Park Place Corporate Finance

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VJ Technology

£29.7m Management Buy-Out

VJ Technology

VJ Technology, based in Ashford, Kent is a leading distributor and manufacturer of technical fixings, fasteners, tools and associated products to the UK’s infrastructure, commercial and wider construction industry. For the year ended 31 December 2017, the business reported sales of £31m and a profit before tax of £5m.

The business was a non-core division of SIG plc and attracted interest from a number of parties. PPCF acted as lead advisor to the management team in their discussions with a group of private equity houses who were keen to support the management buy-out.

Mark Tomlin, CEO of VJ Technology, commented “Ben and his team at PPCF provided invaluable advice to us throughout the process. We got them involved at an early stage which ensured that we clearly understood which elements of the deal were going to be most important to us. PPCF negotiated with the private equity houses on our behalf to deliver an attractive equity package.” 

Kelly Bedding, FD of VJ Technology, said “Having never been involved in a management buy-out before it was important that we had an advisor with lots of experience of these situations. PPCF not only explained, in simple terms, the complexities of the deal structure, but they also provided clear benchmarks that gave us confidence that the offers we received from the private equity houses were favourable against market norms.”

Primary Capital was selected as the preferred funder of the £29.7m management buy-out and concluded the transaction within 4 weeks of being granted exclusivity.

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