European Logistics Management Ltd
“This deal was extremely important for me, for the future of the business and for the people who work at ELM. Getting together with Scott Timber Group made absolute sense, but structuring a deal which suited all parties was a challenge. John’s input was absolutely critical; he got to grips with the situation immediately and his energy and commitment meant that we progressed at even the most difficult times. John is a tenacious negotiator but he maintained a good relationship with the Scotts team, which was crucial to the deal.”
Michael Noble, managing director
Derbyshire-based European Logistics Management Limited (ELM) joined forces with the Scott Timber Group in a deal to facilitate rapid growth across the UK and Europe. Skye Corporate Finance served as ELM’s lead adviser through the transaction.
ELM had secured a niche position as a leading European provider of pallet and packaging recovery and management services – generating turnover of £3 million and employing over 25 staff.
ELM was an attractive prospect for the highly-acquisitive Scott Timber group, the UK’s leading manufacturer of new wooden pallets. Rising timber prices combined with increased environmental pressure meant that a pallet recovery and management business would make the perfect bolt-on for Scotts.
A deal was struck which led to Scotts taking a majority stake in ELM. In essence there were two deals. The sale of the original majority stake had to be right, but equally protecting and maximising the value of the remaining minority stake was vital. This involved not only control and value measurement issues, but even how ELM and Scotts were to interact on a day-to-day trading basis to ensure that all sides were properly incentivised. Skye Corporate Finance acted as ELM’s lead adviser across all these issues.