RSM UK strengthens tax team with new partner in the South

26 october 2022
The Midlands corporate finance team at leading audit, tax and consulting firm RSM UK has advised on a second corporate carve out in just two weeks for IDEAL Industries Inc. (IDEAL) following the sale of CMD Limited to industrial private equity investor Rubicon Partners.

Rotherham-based CMD is a designer and manufacturer of power distribution and ergonomic solutions in the workplace and makes products such as workstation hardware and power track systems for use in the commercial office, retail and hospitality sectors. The company employs 158 people and has been a market leader of award-winning products and services since 1988.

RSM’s M&A and due diligence team supported the preparation of the carve out financials and a financial factbook, identified suitable purchasers, negotiated all aspects of the deal and project managed to completion on behalf of IDEAL. The transaction was led by corporate finance partner Helen Brocklebank, with support from Davin Kandola, Louise Berrie and James Smith; while Phil Parkes, Thomas Sinden and Jake Mallet provided due diligence advice.

Helen Brocklebank, corporate finance partner and head of M&A in the West Midlands at RSM UK, said: ‘This investment by Rubicon presents a successful exit for IDEAL who acquired the business in 2017. It enables CMD to push forward with its continued expansion of its innovative product ranges. As workers continue to return to offices, there is a renewed demand for high quality products and services to ensure workplace connectivity. The existing management team, led by Jon Holding, will lead the business, continuing to provide best in class customer service as it enters a new and exciting chapter.’

The disposal of the two non-core businesses by IDEAL enables the company to focus on its key markets of professional electrician products, high power density connectors and charging systems. 

Helen Brocklebank added: ‘Completing two carve outs in distinct market sectors within the same month highlights that deals can still be done in these uncertain times. Market instability can be a difficult environment to nurture transactions, but it is clear there is appetite from investors to purchase attractive companies with strong potential for growth.’

Steve Henn, CEO, at IDEAL Industries Inc., said: ‘As IDEAL focuses on driving growth in our key markets, it was important to find the right home for CMD to enable it to flourish. The company has an excellent pedigree of products and services, and the new owners see a clear opportunity to drive the business forward successfully as employees return to workplaces and offices.’

The RSM Midlands team also advised IDEAL on the sale of Bedford-based Casella Holdings to TSI Instruments Ltd on 6 October 2022.