Moore Kingston Smith advises Power Adhesives on its sale to Longacre Group
Moore Kingston Smith has advised Power Adhesives, a highly specialised manufacturer of hot-melt adhesives and applicators, on its sale to Longacre Group.
Based in Essex, Power Adhesives is a family-owned business and the world leader in the design and manufacturing of high-performance glue guns, distributing products globally with 70% of sales outside the UK.
Longacre Group is an investment company with a long-term investment horizon focused on the sustainable growth of its portfolio businesses. Power Adhesives joins Longacre’s rapidly growing group of highly specialised, technical products and services companies servicing on the B2B end.
It was a complex transaction with multiple shareholders, involving a divestiture, a capex investment plan and export sales growth. Understanding the clients and their objectives using a solution-based, collaborative approach sped up the transaction and ensured a win/win for all parties.
Power engaged the team to help them find a new owner to lead the next phase of the company’s expansion. Marc Fecher, Matt McRae and Matt Edwards from the corporate finance team supported Power through a highly competitive process which saw interest from potential acquirers across the world.
After accepting Longacre’s offer, the team supported Power’s shareholders and management team in navigating the due diligence process and negotiating the deal mechanics and terms in the SPA. They were supported by Michelle Denny-West, Thomas Acland and Amy Tilley from the M&A tax team who provided corporate tax structuring advice. They also worked alongside Memery Crystal who provided legal advice to Power’s shareholders.
Stephen Sweeney, Managing Director of Power Adhesives, commented: “Marc and his team at Moore Kingston Smith have substantial manufacturing expertise so quickly understood our business. They took us through a strategic review process, set out a plan for our shareholders, structured the sale agreements and ensured we optimised our tax planning. I do not know how we would have managed without them.”
Elliott Nicholson, Managing Director at Longacre Group, added: “The Moore Kingston Smith team managed the Power Adhesives deal process fantastically well. Moore Kingston Smith has strong credentials in the manufacturing sector and helped us appreciate the exceptional quality of the Power Adhesives business model which gave us the confidence to commit to a deal at an early stage.”
Marc Fecher, Corporate Finance Partner at Moore Kingston Smith, said: “We are delighted to have worked with Power and Longacre through the sales process. We look forward to following the company as it continues to go from strength to strength.”