Multi-million pound MBO marks new era for Magnet Expert Ltd

Deal summary

Magnet Expert Ltd, a leading distributor of rare earth permanent magnets and magnetic assemblies has been acquired in a multi-million pound management buyout (MBO). The company has been acquired from Chairman Ian Asquith in a transaction advised on by Roy Farmer and Jenny Moore .

Magnet Expert, which is based in the East Midlands, has been acquired by the existing management team consisting of Managing Director Matthew Ellis, Operations Director Stuart Mather, Finance Director Lindsey Melady and Sales Director David Gault with previous owner Ian Asquith retaining a significant minority stake and moving into the role of Non-Executive Chairman. The MBO follows another record-breaking year for the company.

What our clients say

Managing Director Matthew Ellis said: “We are all excited about Magnet Expert’s future and are honoured to be able to take the company forward. The MBO has given us the best of both worlds, allowing us to look towards developing the company further while retaining the input of Ian, a leading expert in the magnetics industry.

“It is imperative that you instruct corporate finance advisors that you trust have the experience and expert knowledge to manage an MBO and the potential complexities of such a process. We found the team at Dains not only had both extensive experience and knowledge but were also personable, communicative and reliable from the moment our discussions began. We will continue (and look forward) to working with Dains for other projects and would not hesitate in recommending others to use their services.”

On handing over the company, Ian Asquith commented: "I am absolutely thrilled to have been able to pass on the company to the management team. It is a heart-warming sentiment that I know they will continue to operate the business with principles on which I founded it - quality products and an outstanding service for which we are highly regarded. I am looking forward to seeing the company continue to grow under its new ownership.”

What we said

Lead advisor Roy Farmer added: "It has been a delight to work with the team on this transaction. Magnet Expert is a great example of a business which prioritises service at its core which in turn promotes a tremendously positive reputation. Ian has built a fantastic management team who have been responsible for driving the company's growth in recent years, with that growth set to continue under the their ownership. We set ourselves a challenging timetable to complete the transaction, and from a standing start we completed in just three months. This was a real team effort, and is testament to the hard work and focus of the management team, the vendor and all involved.”

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