Dains and Finance Birmingham help Goodfish to expand

Deal summary

Toolmaking and injection moulding company Goodfish Ltd has acquired complementary business Powell & Harber after securing a £1 million debt and equity investment from Finance Birmingham. Dains provided financial due diligence support to Finance Birmingham in addition to advising on the normal working capital base level.

Based in Cannock, Staffordshire, Goodfish employs 30 people and has clients in markets including the USA, Ireland, Portugal, Hungary and Poland as well as the UK. Powell & Harber is a plastic injection-moulding firm based in Worcester, which employs 40 people. The acquisition will significantly expand Goodfish’s business, enabling the company to work for larger customers such as original equipment manufacturers (OEMs) and more tier 1 automotive suppliers.

Both companies work for a range of sectors, including automotive, medical, aerospace, defence and leisure sports. The deal also enables them to work more closely, sharing best practice and matching capacity to meet client demands. It is expected to create five new jobs.

The difference we made

Roy Farmer and Rob Wilson provided financial due diligence on the historical financials of both Powell and Harber and Goodfish, together with the forecast for the enlarged group. In addition, we also advised on the normal level of working capital in Powell & Harber, providing a base for the working capital adjustment at completion. We completed the due diligence in a detailed and prompt manner to support the successful completion.

What our client said

Greg McDonald, managing director of Goodfish, commented:

“Finance Birmingham’s support has enabled us to secure the acquisition of Powell & Harber, a first-class precision moulding and tool-making business, at a time when the owners were looking to retire. Together with Powell & Harber, Goodfish will be able to better address the demanding requirements of larger customers whose business we have been targeting for some time. This, in turn, will help accelerate our growth and secure employment in the area.

Ian Fairclough, investment director at Finance Birmingham, added:

“Goodfish’s acquisition of Powell & Harber will give both firms the scale and flexibility to service much larger clients. By working together, they will benefit from greater stability, increased capacity and a wider skills base within their workforce.

“The £1 million funding allocated to Goodfish will help two ambitious Midlands firms to go from strength to strength, with further growth and recruitment in the pipeline.”

What we said

Rob Wilson, Manager at Dains Corporate Finance said: “This transaction is a great outcome for all parties and a deal that makes good business sense in consolidating two complementary businesses and ensures the manufacturing stays in the West Midlands.”

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