FRP advises on £117 million multinational merger
Solent Global (Solent), a provider of branded, licensed and white label products to the consumer sector, is to merge with Sweden’s Humble Group in a multimillion-pound deal supported by our Corporate Finance and Debt Advisory teams.
Established more than 25 years ago, the Dorset-headquartered firm has a history of strong growth with high profitability. With operations in the UK, China, Hong Kong, South Africa, Vietnam and Australia, Solent manufactures an innovative portfolio of health and beauty, household, impulse snacking and general merchandise products for retailers including Tesco, M&S and Morrisons.
Both businesses are expected to merge their sales networks in the coming months, as the Swedish FMCG powerhouse looks to expand the reach of its products into the UK through the £117 million acquisition (total purchase price amounts to a maximum of £117 million with a fixed sum of £81.9 million alongside deferred consideration and earn-outs.) Following the merger, the combined group will operate businesses and distribution in more than 10 markets globally.
Solent was advised by our Corporate Finance team, led by Partner Clive Hatchard and Manager Chris King. The team’s knowledge of the business and strong track record also enabled our Debt Advisory team, led by Partner Simon Sherliker, to ensure that Solent’s existing banking and debt facilities were maintained as part of the change in ownership.
Simon Petrén, CEO of Humble, said: “Solent has some of Europe’s largest store chains as customers and the transaction opens both the UK and several key international markets around the world by adding many new points of sales to grow the export for Humble’s other brands. The M&A pipeline looks very strong and we are well prepared to continue scaling Humble rapidly. It is with great pleasure that we welcome Solent and the team to Humble.”
Richard Porter, Founder of Solent Global, said: “This exciting new chapter accelerates our growth ambition to become a market leader in our personal care and beauty, homecare and food categories with the aim of creating a £1 billion market share by 2025. Simon and the Humble team have a fantastic vision which we share, and we will now contribute to more sustainable products for both humanity and the planet.”
Clive Hatchard, Partner at FRP Corporate Finance, said: “This deal is indicative of the strong interest large multinational operators are showing in innovative and well-established UK businesses. The team at Solent has demonstrated an outstanding proposition in recent years, and the relationships they hold with household name stockists is testament to the quality of their products. We look forward to the business and its brands’ continued growth as part of Humble.”
Consumer & Retail
Selling a business
This deal is indicative of the strong interest large multinational operators are showing in innovative and well-established UK businesses.Clive Hatchard Corporate Finance