Swedish multinational group completes acquisition of Rotherham business

Rotherham-headquartered Acorn Industrial Services Group has been acquired by Swedish multinational group, Axel Johnson AB.

BHP Corporate Finance provided integrated corporate finance and tax advice to Acorn’s shareholders, whereas hlw Keeble Hawson provided legal advice on the deal.

With annual turnover in excess of £20m, Acorn Industrial Services Group is a distributor of bearings, linear systems, power transmission and related services.

Founded in 1983, the company currently employs a team of approximately 100 people, with nine sales branches throughout the UK and an e-commerce platform supporting customers throughout Europe.

Axel Johnson AB is a £6bn revenue privately owned Swedish trading and services group, employing over 20,000 people.

Acorn will become part of Axel Johnson International, the technology trading division that supplies products, systems and services to industrial customers across Europe.

Acorn directors Martin Povey and Des Spillings originally acquired the business in a management buyout in 2006 and will continue to drive forward the company’s continued growth strategies.

Des Spillings commented: “Acorn has grown tremendously over the last 10 years and to continue our growth, and more importantly, to grow at a quicker pace, we needed to align ourselves with a business that could bring with it skills and resources that we do not have currently.

“With the European market place changing and consolidating quicker than at any time in the past 20 years, we had to find the right partner for the future and we believe Axel Johnson International to be this partner.”

Don Gray, partner at BHP Corporate Finance, added: “We are delighted to have had the opportunity to advise on this transaction. Since acquiring Acorn in 2006, Des and Martin have grown the business three-fold through a combination of organic development and carefully targeted acquisitions.

“The successful sale to Axel Johnson is a testimony to their strategy of building a leading independent distributor in specialist technical markets and reflects the continued interest we are seeing from overseas buyers in UK companies.”

Legal advice to Acorn’s shareholders was provided by hlw Keeble Hawson led by corporate partner, Nick Goulding, who said: “We acted for Martin and Des on their MBO in 2006 and have since represented Acorn Industrial Services Group through a series of strategic acquisitions.

“This is a milestone development and paves the way for this vibrant and successful business to accelerate its growth and vision with a first-class management team.”

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