Insider’s June Deal of the Month
Midlands Business Insider editor Andy Coyne has selected the multi-million pound acquisition of Birmingham’s Correl Rail by the Swiss-based SGS Group as our June deal of the month.
Correl is an independent certification body for the rail industry which specialises in the inspection and certification of railway rolling stock. The business carries out work for a number of the leading rolling stock manufacturers, as well as train operators and leasing companies.
It services a wide client base throughout Europe and, increasingly, Asia. SGS Group is the global leader and innovator in inspection, verification, testing and certification services, with an annual turnover of £3bn.
The group has more than 64,000 employees and a network of over 1,250 offices and laboratories around the world.
SGS acquired Correl to help develop its railway services portfolio, targeting substantial worldwide growth in what is seen as a buoyant market sector. Correl shareholders and directors Nigel Bean, Colin Turpin and Barry Cullinane, who established the company ten years ago, will retain senior positions in the business.
Birmingham-based Orbis Partners advised on the deal whilst legal advice was provided by Wragge & Co.
Orbis’s Shah Zaki, who acted as lead adviser on the deal, said: "This was a very exciting deal for us to be involved in as we were able to access a number of strategic international potential buyers through our Clairfield International partnership. We concluded a deal which reflects Correl’s strategic market potential.
"With the support of SGS, the business will be able to develop its already impressive capabilities into new services and geographical markets as well as consolidating its dominant position in the UK."
Explaining his choice, Coyne said: "Although we don’t know the exact amount paid for Correl this is a really interesting deal. It shows there is still an appetite for good businesses in our patch from European corporates with deep pockets. Trade buyers can act quickly and decisively and all the cards are in their favour.
"It also shows the benefit of belonging to the sort of international network that Orbis is part of when advising on multi-jurisdictional deals
"And the fact that the Correl directors are staying with the business will hopefully mean that the results of SGS’s future growth will be seen in our region."
