Case Study: CT Automotive
- Management buy-out
- Deal completed:
- April 2017
Established in 2000, CT Automotive Group Limited (“CT”) was founded to provide quick lead time, low cost automotive injection tooling manufactured in China and delivered to key European tier 1 locations.
During the early part of 2005 CT established its own tool room and trial facilities in Shenzhen catering for Tier 1 and OEM level Interior trim & HVAC tooling.
Always striving to go one step by 2006 CT established the first kinetic components assembly plants alongside the Shenzhen tool room. These now provide a wide range of products including Air Vent assemblies, Armrests, Mechanical Storage units, Gaiter boot assemblies, PKB assemblies and wrapped trim panels.
Now with multiple facilities in Asia, Europe, Middle East, North and South America, CT provide a truly global service holding major multiyear contracts with all the major automotive manufacturers.
Meridian were engaged by the management team to facilitate several non-operational shareholders exits. Meridian worked alongside HSBC, Southampton and the management team to deliver a funding package that achieved this objective whilst also providing the business with facilities to meet its strong growth forecast and expansion plans.
The management buy-out (MBO) sees two of the three original founders – Jason Philips and Oliver Whitfield – selling their shares and handing over to the new management team which consists of Scott McKenzie, managing director since 2014; David Wilkinson, group finance director since 2011; and Simon Phillips, co-founder and executive chairman.
David Wilkinson Group Finance Director of CT comments, “Meridian were the only firm which came up with the innovative structure that managed to balance shareholder cash requirements with the appetite some of them had to participate in future upside.
Michael Barcia is a very experienced CF advisor who put together a very impressive deal for us which managed to satisfy shareholder cash requirements without the need for external equity; something other advisers were unable to offer.
Philip Mettam is a young but very confident and knowledgeable advisor of the Meridian team who undertook the bulk of our day-to-day advice and provided sound guidance on both the practical aspects of getting the deal done and innovative ideas to resolve various issues that cropped up during negotiations.
HSBC has supported CT since inception, and this latest round of funding allows us to continue running successfully and without outside influence. We are also particularly grateful to our partners at Trethowans, KPMG and Meridian for helping us achieve the MBO and for their continued support.”