Henley-on-Thames: HMT advises on Connection investment in Rowan

HMT, led by partner Paul Read, manager Tom Bradbury and executive Corin Briault-Hutter undertook financial due diligence for Connection Capital on its investment in Rowan International to support the management buyout.

Founded 30 years ago, Rowan International is one of Europe’s largest residual stock management distributors, which specialises in buying and re-selling branded goods to the discount market. The company purchases surplus stock of fast-moving consumer goods such as leading-brand toiletries and cosmetics or household items that are leftover, for instance when a promotional campaign comes to an end. It then re-sells it to leading national and international discount retailers.

Rowan International has strong relationships with many of the leading industry brands, including Johnson & Johnson, Unilever and Procter & Gamble.

The deal will enable Rowan International’s management team to accelerate the development and growth of the business by expanding its supplier relationships across Europe and increasing its focus on higher-margin goods.

Connection Capital has also been able to offer practical expertise to Rowan, by introducing John Cleland, an experienced new non-executive chairman to help support the management team as it embarks on its next phase of growth.

HMT undertook financial due diligence on this transaction.

Pascal Wittet, investment director at Connection, commented: “Paul and the Team at HMT quickly got to grips with the business model and key risks, worked to a tight timeline and delivered a comprehensive FDD report. Thank you for all your hard work.”

Paul Read commented: “The business is well placed with the experienced MBO team supported by Connection to drive Rowan International through its next phase of growth. We were delighted to advise Pascal and the rest of the Connection team on this exciting opportunity and look forward to working with them again in the future.”