Cardiff-based print and document solutions provider Pinnacle has been acquired by market leader Ethos Group.
The acquisition, the value of which hasn't been disclosed, expands the geographical reach of Ethos Group's print portfolio.
Pinnacle Document Solutions operates in the 海角视频 and mainland Europe with over 30 years’ experience. It supports over 3,500 managed devices.
With a combined workforce of over 200 employees, the deal will see Ethos' turnover exceeding £42m by the end of the next financial year whilst looking to maintain Ebitda at 18% of revenues,
Barry Matthews, chief executive of Ethos, and Clive Hamilton, managing director of Pinnacle, will continue to work together to support the group’s ambitious growth plans.
Mr Hamilton joined Pinnacle in 1993 as a sales executive, before leading the management buy-out of the company in 2015 and undertaking the subsequent acquisitions of Fast Technology and Copier Mate.
Its acquisition by Ethos provides a successful exit for the Development Bank of Wales, who provided debt and equity funding to support the management buy-out led by Mr Hamilton.
It is understood that the deal provides the Development Bank of Wales with a two times return on its investment.
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Mr Matthews said: “The acquisition of Pinnacle, together with Clive and his staff represents a strategic growth opportunity providing a solid platform in South Wales and the South West of England to build upon.
"Having known Clive for a while I was already aware of how well regarded he is within the industry and am excited to have the opportunity to now work alongside him. His work ethic is unparalleled and his outlook for the continued success in this industry is like my own.
"On a personal note, this acquisition was one of the last things I had the pleasure of working on with the chairman of Ethos, Paul Norris, before he passed away unexpectedly last year and for me, the senior leadership team and staff, this acquisition represents a continuation of his legacy.”
Mr Hamilton said: “We started this journey in March 2015 with the MBO, where myself and the board planned the M&A growth as well as the organic growth of Pinnacle within this 5 year period.
"The next step on this journey is now to look at how we can merge our skills, staff experience and customer loyalty to make a bigger more sustainable Business with far greater solutions and services that our clients will benefit from.
After meeting Paul and Barry I knew that Ethos were the Group that will add this value, drive and support to allow us all to build a more consolidated business that is in keeping with the fast paced technology market place that we are working in.
On a personal note I am very excited at the opportunity in working with Barry and his senior leadership team to continue the Pinnacle story and journey going for the next 5 to 7 years.”
Dealmakers
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Gambit Corporate Finance acted as lead financial advisor to the shareholders of Pinnacle and were responsible for identifying, negotiating and structuring the transaction. The Gambit team was led by Geraint Rowe (partner) Tim Brotherton (director) and Nick Gallagher (analyst).
Mr Rowe said: “We have had the privilege of working closely with Clive and Pinnacle for several years, having previously advised on the MBO in 2015 and subsequent acquisitions, witnessing first- hand how the company has grown to become a leading provider of managed print services and document solutions in South Wales and the South West.
"The acquisition by Ethos Group will enable both Pinnacle and Ethos to realise the next stage of their growth plans as part of a larger group, with a greater service offering and customer footprint.”
Gunnercooke provided legal advice to the Ethos Group and Hugh James (Gerallt Jones and Gemma Davies) provided legal advice to the shareholders of Pinnacle.
Sam Macalister-Smith led the transaction for the Development Bank of Wales.