Spaldings Holdings Limited / Marubeni Corporation
Cavendish is delighted to have advised on the sale of Spaldings, a leading UK national distributor of replacement and consumable parts for the land management sector. Marubeni Corporation (“Marubeni”) of Japan has purchased a majority controlling interest with a minority equity stake retained by the existing shareholders.
Spaldings is unique in its market position in dealing directly with 35,000 UK and Ireland land managers, principally farmers, local authorities and their approved contractors that are serviced via a direct sales force, telephone sales and e-commerce trading. Spaldings reported sales of £23 million and operating profit of £2.4 million in their last published accounts.
The Marubeni Corporation is one of the largest trading companies in Japan with world-wide interests across varying markets including food, forestry, chemicals, energy, minerals, power, finance and transportation and machinery. Marubeni reported sales of US$42.3 billion for the year ended 31 March 2011. Spaldings will become part of Marubeni, whose other interests in the UK include the sale of agrochemicals, agricultural machinery and other transportation equipment.
David Fox, Spaldings Chief Executive and his senior executive team have entered into long-term employment agreements with Marubeni.
Commenting on the acquisition, David said:
“The opportunity to become part of a world-wide operation such as Marubeni is tremendously exciting. With their infrastructure, resources and knowledge the future of the Spaldings business with opportunities to grow both organically and via acquisition will only be enhanced”.
Michael Jewell, Cavendish Partner commented:
“The sale of Spaldings to Marubeni represents the second time in the past year that Cavendish has successfully sold a business to a Japanese buyer. Marubeni recognises the great platform and relationships that Spaldings has in the UK and the value created by David and his team.
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