Disposal of Adey Professional Heating Solutions
An integrated, multi-disciplinary Deloitte team including M&A Advisory, Debt Advisory and Tax has advised on the successful sale of Cheltenham-based ADEY Professional Heating Solutions (“ADEY”) to its management team and LDC.
Deal background: About ADEY Professional Heating Solutions
Founded in 2003 by entrepreneurial plumber Chris Adey, ADEY (www.adey.com) pioneered magnetic filtration protection for central heating systems and is now the undisputed market leader with c. 60% UK market share. ADEY’s range of products have been proven to increase heating system efficiency and longevity – with a corresponding benefit of a reduction in energy and maintenance bills – by removing the magnetic and non-magnetic debris that can build up in all heating systems.
The Company has demonstrated considerable growth, from £18m annual revenue in 2012 through to £34m in the year to December 2015, with its main product, the MagnaClean® filter, achieving significant volumes in over 40 countries. ADEY now plans to continue its expansion into new geographies including the US and China, as well as investing in new product development to further consolidate its market-leading position in the UK.
The disposal mandate was secured through the long-standing relationship held by the local Deloitte Advisory Corporate Finance team with the shareholders and management. Using our extensive knowledge of the building products sector, we developed a deep understanding of the business and its strategic goals in order to provide advisory services.
Key Services involved in this transaction
Martyn Gregory, Practice Senior Partner in the South West & Wales, led the M&A advisory team, who acted as lead financial advisors to the shareholders. Deloitte Debt Advisory and Deloitte Corporate Tax also provided advice during the transaction.
Through process design, leveraging competitive tension and tight project management, the transaction process reached a successful conclusion with sale to the business’s management team and LDC – and provided a great return to Chris on the business he started in his garage all those years ago.