Sale of Wholesaler Distributor of Tile and Stone
The successful sale of a business is often due to placing it with a Business Broker with experience and understanding of your particular sector. This proved to be the case when Hornblower received the mandate to sell Staffordshire Tile & Stone Co. Ltd (STSC).
Prior to approaching Hornblower, the owner had previously tried selling the business through another broker and the business had been on the market for 12 months with hardly any interest and no offers at all. Having sold a number of construction industry and construction material wholesale firms, Hornblower was well placed for the sale with a ready-made list of buyers and investors.
The sale of STSC set off at an encouraging pace, generating serious interest and delivering scope for the seller to consider a range of options to serve his best interests. The business first went on the market with Hornblower in January 2021 and within a matter of weeks, the mandate had received 3 compelling and competitive offers which enabled us to negotiate the best possible terms with the preferred bidder, and to complete the deal within 5 months of putting the business on the market for sale.
The Company
The company is a well-established tile and stone supplier with a wide range of high-quality products primarily merchandised from its substantial showroom and distribution warehousing facility. From its location in the Midlands, STSC enjoys a robust client base consisting of a range of trade and distribution customers across the UK. The company has developed a strong industry reputation over a period of 10 years of trading.
STSC sells a comprehensive variety of wall and floor tiles in a range of categories, materials, shades and sizes. The wide product range featured predominantly Italian and Spanish porcelain ranges, porcelain wood ranges, kitchen ranges, bathroom tiles, natural materials and patterned tiles.
Staffordshire Tile & Stone Co. is comprised of a close-knit team of 7 employees, focused on delivering excellent customer service based on extensive product expertise. The company Founder and Director, led the business along with the Sales Manager, forming the key management team in the business.
This thriving business was initially established in 2010 as a small lifestyle business operating on a local basis. The company experienced an early uptake for its product range, which has proved to be desirable and in demand resulting in the company experiencing rapid and sustainable growth at this early stage. STSC has successfully developed its model to grow the distribution side of the business, which by 2020 accounted for more than half of the turnover generated.
Throughout 2020, STSC had generally sustained positive performance levels despite the unique challenges posed by the impact of Covid19. The business experienced continued growth with significant development opportunities in the pipeline, anticipating growth in 2021 of 15%.
The Situation
After 10 years of building and running STSC, the owner had made a decision to step back in order to focus his time and energy on other personal priorities. With STSC firmly established and positioned for expansion, he had determined that the business would benefit greatly from a new acquirer with the infrastructure to grow the business further, to accelerate STSC’s growth plans.
The proactive approach of the business in the face of challenges also stood in its favour. STSC had fared well throughout the pandemic lockdowns of 2020.
The Outcome
The preferred bidder was a trade buyer, BC Ceramics, a clear leader in the luxury tile sector, equipped with a clear growth plan for the acquisition. As an additional boost towards a successful sale, the vendors and the buyer quickly established a good working rapport, and the buyer was able to move swiftly to complete the deal.
Heads of terms were signed in March 2021 and the deal completed in mid-May 2021, demonstrating an ideal experience for all parties involved and reflected in a glowing endorsement from the vendor, who said:
“I would like to thank Derick and all at Hornblower for the efficient, professional and speedy service we received when selling my business. Derick helped us through the process, advising and guiding us throughout. We were happy with the deal achieved and would definitely recommend Hornblower to anybody looking to sell their business.”
The deal was managed by our London based Business Sales & Acquisitions Consultant, Derick Humphrey. Derick manages business sales for Hornblower across the UK. The legal transaction was handled for the vendor by Jitesh Patel of Links Legal.
SOLD – May 2021
