Care and education supplies business The Consortium has acquired West Mercia Supplies (WMS) in a deal put together by Bristol-based advisers and funders.
Grant Thornton’s corporate finance team in the city advised Trowbridge-based The Consortium on the deal, with legal advice provided by TLT Solicitors and funding from RBS, both also based in Bristol.
WMS was acquired from its four local authority owners Shropshire, Herefordshire, Worcestershire and Telford & Wrekin councils for an undisclosed sum. It will now be run by The Consortium as an independent entity under the leadership of Elaine Keogh, formerly deputy managing director at WMS.
The new combined group expects to secure a number of benefits from joint working between two very similar businesses operating in adjacent geographical areas.
The Consortium employs 240 people and turns over £45m. WMS is headquartered in Shrewsbury with a turnover of £15.5m and 95 staff.
Grant Thornton’s head of corporate finance in the South West Mark Naughton said: “This was a complex and unusual transaction, being the purchase of a business out of the public sector. It is great news for The Consortium and will play a key role in helping the company to pursue its growth ambitions.”
The Consortium's chief executive Melanie Teal said that opportunities to improve value for money, range and service to customers had already been identified and that more would follow as the two organisations start to better understand each other’s strengths.
“This is the first public to private transaction in the educational supplies sector for some considerable time and, thanks to the support of WMS staff and unions, it has been handled extremely professionally," she said. "The Consortium is delighted to have secured the future of WMS and its staff and looks forward to building on the best from both organisations.”
