An investment business founded by Sale Sharks co-owner Simon Orange is to be acquired and list on the New York Stock Exchange in a deal which values it at around $1.6bn.
Altrincham headquartered CorpAcq's portfolio includes 41 businesses such as Cotton Traders, Aintree Plastics and Metcalfe Plant Hire and is set to receive $592m in additional funding through the move.
The company is to be acquired by Churchill VII, a special purpose investment vehicle set up as a trust account by New York corporate financier Michael Klein.
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According to its most recently-published accounts, CorpAcq achieved a turnover of £561.4m and pre-tax profit of £27.6m in 2021. Its accounts for 2022 are due to be filed by the end of September.
According to the deal announcement, CorpAcq ended 2022 with a revenue run-rate of $850m and an adjusted EBITDA of $133m.
Among CorpAcq's backers include Goldman Sachs Asset Management and Nova Capital which invested in the business last year.
CorqAcq founder and chairman Simon Orange, the brother of former Take That singer Jason Orange, said: "Today is an exciting milestone in CorpAcq's history and validation of our team, our tremendous growth and our approach of partnering closely with and empowering portfolio companies to drive long-term performance. We are thrilled to partner with Churchill VII.
"With their team's deep M&A and capital markets expertise, track record of value-added investing in companies as well as an extensive relationship network, we are confident that Churchill VII is the right partner to propel CorpAcq's next phase of growth.
"As a public company, we believe CorpAcq will be better positioned to accelerate organic growth, expand our acquisition pipeline deeper in the º£½ÇÊÓƵ and deliver compounding returns to shareholders, all while staying true to our ethos of fostering autonomy at our portfolio companies and investing over a long time horizon."
Mr Klein, chairman and CEO of Churchill VII, added: "When we launched Churchill VII, we wanted to identify a profitable, cash flow generating partner with strong management, a highly differentiated business model and clear growth opportunities.
"We believe CorpAcq fits all our criteria and more with its proven acquisition and operating strategy, established positioning in the º£½ÇÊÓƵ SME space, track record of topline growth and profitability and talented management team.
"With its meaningful financial returns, current industry positioning, substantial cash flow to support dividends and upside potential to accelerate its acquisition pace in new markets, we believe the company is a highly attractive opportunity for shareholders.
"We look forward to working with Simon and the rest of CorpAcq's management team as we position this business for future success."
Mr Orange will continue to lead CorpAcq alongside chief executive David Martin.
The deal is expected to be completed later this year or early in 2024 and is subject to approval by Churchill VII's shareholders.
Citigroup Global Markets Inc served as capital markets advisor to Churchill VII.
Duff & Phelps rendered a fairness opinion to the board of directors of Churchill VII in connection with the proposed transaction. Reed Smith LLP served as legal counsel to CorpAcq.
Weil, Gotshal & Manges LLP served as legal counsel to Churchill VII.
