South East: Spectrum advises Raymond Brown Group on sale to management

Spectrum Corporate Finance, acting as the lead adviser, has successfully completed the sale of Raymond Brown Minerals and Recycling (RBMR) to management, backed by Elysian Capital.Spectrum was appointed by the shareholders to complete a full sales and marketing process of RBMR, before agreeing to sell to the incumbent management team and Elysian Capital. This was a highly complex transaction which involved the demerger of the group prior to the sale.

RBMR, based in Chandler's Ford, is a leading regional integrated aggregates and recycling business which has operated as an independent business across Hampshire, Dorset, Wiltshire and Oxfordshire for over 60 years.

RBMR has developed three equally-strong business streams – aggregate extraction and provision through a network of strategically positioned quarries; long term strategic partnerships for the processing and recycling of incinerator bottom ash; and regional waste management and recycling through a network of high capacity material recovery facilities.  The group has a strong reputation for product and service quality and environmental responsibility.

Under the leadership of Stuart Harris (MD) and Steve Clasby (COO), multi-million-pound investments have been made across its 12 site portfolio over the last 3 years, including a new IBA facility near Andover, and a new quarry in Romsey, driving group sales in excess of £30 million and creating the platform for significant further growth.  As a business with regional critical mass, RBMR has a number of exciting opportunities across each of its business streams to continue to develop its strong asset base; increase its footprint by taking advantage of strategic regional mineral reserves and waste recycling opportunities; and develop its presence further within the high-growth IBA market.

Legal advice was provided to the shareholders of Raymond Brown Minerals and Recycling by Shoosmiths, and senior debt and working capital facilities were provided by Lloyds Bank. DSA Prospect provided tax advice to the shareholders on the demerger process.

Harris said: “We are thrilled to do this deal with Elysian.  It was a complex transaction and Elysian not only grasped quickly what makes RMBR special and the nature of the opportunity ahead, but also demonstrated a real willingness and flexibility to make the transaction happen.  We have ambitious plans and in Elysian we have a partner with genuine operational in-house experience that can support us through the next phase and very strong alignment.”

Simon Davies, managing director of Spectrum Corporate Finance, commented: “Having started working with the shareholders back in 2009 to effect a transition from the then family-owned business to the management team, it is great to see the next stage of development and to be involved in that process. This sees the sale of RBMR, with the rest of the group demerged back to independent businesses under the same successful management teams.”

Kelvin White, group chief executive of Raymond Brown Group, commented: “The shareholders have worked with Simon over many years, and given the different transactions contemplated, including an MBO, were comfortable for him to be acting for all. This transaction, including the demerger, took an incredible amount of time and effort, and Simon and James worked unstintingly to get everything done to ensure the transaction got through to completion."