Law firm advises on sale of Hi-Line Industries Ltd

Spencer Wright, the Midlands based independent Corporate Financier and Business Adviser trading as SWBA, and European law firm Fieldfisher have represented Steve Smith, the managing director and 100 per cent Shareholder of Hi-Line Industries Ltd on the sale of the company to Ingersoll Rand, a multinational industrial firm headquartered in the United States.

Spencer acted as lead adviser in the transaction. Other advisers to the transaction include David Bowler and Harry Cooke at Sibbalds Accountants (Tax and Accounting) and Naomi Wilson at Astle Patterson (Property).

The Fieldfisher team was led by head of Corporate in the Midlands, partner Andrew Lawton Smith (pictured) and supported by associate Francesca Lo and trainee solicitor Frances Lee.

Hi-line Industries are UK specialists in the innovative design, manufacture, supply and installation of energy efficient Compressed Air Purification Equipment. Ingersoll Rand have been on a rapid but selective acquisition programme in most global territories, seeking highly performing, market leading business to either complement or extend their existing product range and geographic coverage. As a result of its recent growth and performance in the UK market, Hi-Line had become a very attractive target and this, together with identified supply chain synergies, meant that a strong multiple of earnings valuation was negotiated and secured during the due diligence and legal process.

Spencer Wright, said: “I was delighted with the work and efforts from both the in-house team at Hi-Line and the select wholly Midlands based professional advisory team during the extended completion schedule for the deal. The buyer utilised the services of a large and extensive team of globally sourced external advisers for its comprehensive and detailed due diligence process. This presented at times considerable challenges and at certain peak times during the transaction, the significant volume of enquiries and time demands from the buyer’s side risked impacting on the day-to-day activities and continued growing performance of Steve's team and business.

“Fortunately, through a combination of great teamwork and many late nights, myself and my colleagues at Fieldfisher, Sibbalds and Astle Paterson were able to meet the challenge and do the heavy lifting”.

Andrew Lawton Smith said: "We are very happy to support one of the region's most successful entrepreneurs and his business on its next phase as it transitions to, and focuses on, development, growth and further success."

Spencer added: “The acquisition of Hi-Line Industries is a key piece in the jigsaw for Ingersoll Rands strategy for its Air Treatment division in the UK. I had just started working with Steve on an exit strategy planned for two to three years' time, so the deal had to be negotiated and structured to ensured no value was lost to Steve as seller.

“Fortunately, we were able to work very openly with the buyers professional and experienced internal M&A team to realistically recognise the future value generation whilst moderating their usual accelerated acquisition and due diligence processes. This was particularly important given that the business was both in the middle of implementing a change in IT and Management reporting and accounting systems and going through a continuing double digit growth phase both of which in themselves demanded the constant attention of Steve and his management team.  Overall, a great result was achieved for both parties."

Steve Smith commented: "I am very grateful to Spencer and the whole of my advisory team for their efforts during what was at times quite a stressful process. I was never in doubt that the transaction would not be completed and have already had no hesitation in recommending and introducing them other business owner colleagues in the sector for when they reach the decision to find an exit. My strong advice to them however has been to seek advice well in advance of their planned retirement date if possible!" 

Fieldfisher's market leading corporate team advises private and listed businesses across Europe as well as in-bound investors and consolidators. The Birmingham office is a multi service branch of the firm, offering specialist advice in a number of sectors including corporate, technology, real estate and dispute resolution.