THE second overseas takeover of a North East business in weeks saw two teams of regional dealmakers rise to the challenge set by a tight deadline and foreign protocols.
Tait Walker’s corporate finance team, headed by Michael Smith, acted for Middlesbrough-based North Eastern Tyre and Exhausts (NETE) on its sale to Stapleton’s Tyre Services.
Hertfordshire-based Stapleton’s is part of the £123bn Japanese Itochu Corporation which one week earlier had bought Kwik-Fit, Britain’s biggest tyre retailer, for a reported £637m.
NETE’s managing director, Gavin Marshall, said: “This is an exciting and positive time for the company as we look to develop the brand further and seek to grow the business.
“The support we have received from Tait Walker was first class. Their understanding of our needs, coupled with their professionalism and approach when dealing with larger corporations, sets them apart from other professional firms.”
Speaking about completing its largest takeover deal to date, Tait Walker partner Michael Smith said: “I am delighted we have achieved a great result for the shareholders of North Eastern Tyre and Exhausts.
“I believe our ability to work closely with clients, advising on how best to package their operations when preparing an exit, has been at the core of this transaction. “
Newcastle-based Tait Walker’s team of Michael Smith, Mike Russell, Helen Finn and Lucy Gray worked on the agreement for over five months.
Robert Phillips, Nicola Loose and Steven Greenwood of Newcastle law firm Muckle provided legal advice.
Loose, a partner at Muckle said: “We have worked with NETE for over six years as it has grown and acquired new sites, and we were delighted to work with the shareholders to help to structure and achieve the successful sale of the business.
“STS is gaining one of the largest regional players in the tyre market and NETE is an important strategic fit for it.
“NETE should have the opportunity to grow and develop even further as part of the larger STS group.
“There were challenges for the team in connection with operating within the Japanese approval process and the short timescales that everyone wanted to achieve – but this is becoming more common with the trend towards foreign buyers.”
Earlier this month the Newcastle- based Metal Spinners Group was sold to the American Standex company. The amounts for both of these deals have not been disclosed.
The competitive price of sterling is behind the trend for overseas firms buying North East companies.
NETE own and operate 22 retail and wholesale outlets across the region with 360 staff. It says it is now in a position to grow with the support of a large corporation, and is keen to build up its presence in Scotland, Yorkshire and the North West.
