Law firm Kitsons and chartered accountants PKF Francis Clark have advised on the sale of the South West’s leading independent roofing supplies merchant, Roofing Supplies (SW) Limited (RSL), to Longhouse Group.
The announcement means Longhouse’s stable of South West companies, which includes grounds care machinery specialist MST and light engineering supplier Parkins, now has assets with a combined turnover of £22m employing over 110 people.
Formed in 2012, Longhouse is owned by the ex CEO of Sutton Harbour Holdings plc, Nigel Godefroy, and ex Redhall Group plc CEO, Simon Foster.
The acquisition of RSL, which has premises in Exeter, Plymouth and Newquay, sees the company’s previous directors step out of the business and replaced by new general manager Damion Fearnley.
Nigel Godefroy, director at Longhouse, said: “RSL is the perfect type of business for our stable of companies which are all successful and profitable in their own right.
“We are delighted to have acquired RSL and welcome them into the Longhouse group where we have ambitious plans to develop and grow the business even further.”
The PKF Francis Clark Corporate Finance team advised the vendors. Dave Armstrong, Corporate Finance Director who led the transaction, explained: “We were delighted to advise the vendors through the sales process which, as expected, attracted strong interest from both regional and national building supply merchants.
“We were also well aware of Longhouse’s appetite for businesses such as this, particularly given their ownership of Parkins, another multi-location business selling into the construction sector.
“The fact that RSL has been acquired by another South West group, as opposed to a national business, makes this transaction all the more pleasing, demonstrating regional strength which is great news for the local economy.”
The vendors’ solicitors were Kitsons while Wolferstans represented Longhouse Group.
The Royal Bank of Scotland Group, led by Exeter based relationship director Martin Wright, part-funded the deal. Martin said: “It was a pleasure to be able to structure an appropriate package to support the Longhouse team to allow them to continue to meet their ambitions with the business and aid the future success of RSL.
“We relish assisting local business growth across the South West area and look forward to a long working relationship with the Longhouse team as they continue to grow their business over the coming years.”
PwC carried out the financial due diligence on the deal with independent chartered accountants Thomas Westcott taking care of the completion accounts.
Tom Ayerst Corporate Finance Partner from PwC said: “RSL should prove to be a good acquisition for Longhouse – fast growth, good service and a loyal customer base. We're always keen to work with and support growing South West businesses. RSL and Longhouse are both great examples of these.”