SUCCESSIONARY AGREEMENT IN PLACE AT CENTRAL TELECOM
A 'successionary arrangement' transaction has been completed at Burton-on-Trent based Central Telecom UK Limited. The deal sees the founding shareholders pass the ownership of the company to the existing senior management team, although a reduced interest will still be retained.
The transaction was originated by Lloyds TSB Corporate and was funded and advised on from Birmingham.
The funding package, which includes senior debt and working capital facilities, was put together by Martin Cordey and Andy Taylor of Lloyds TSB Corporate's Acquisition Finance Unit. Rob Parry of Heatons was legal adviser to the management team, whilst Martyn Pilley of RSM Robson Rhodes acted as lead financial adviser on the deal.
The Birmingham advisory team was completed by Roger Buckley from BDO Stoy Hayward and Paul Hayward from Gateley Wareing who advised the vendors, together with Carol Betts from Hammonds who advised Lloyds TSB and Malcolm Cook from PKF who acted as reporting accountant.
Commenting on the agreement, Managing Director Andrew McDougall said:
'Central Telecom's first class reputation is based on delivering the highest possible quality of service to its clients. This transaction will ensure that we retain our independence and continue to provide the best possible solutions to our customers.'
Martin Cordey of Lloyds TSB Corporate commented:
'Central Telecom is a long-standing customer and we were delighted to lend our support to this transaction as the management team have already overseen an impressive period of growth in difficult market conditions in the telecoms sector'.
Central Telecom was founded in 1985 and is now a market leader in the field of integrated communications systems. The company implements leading edge communications solutions across a diverse range of market sectors, including finance and education, retail, IT/telecoms and leisure and boasts more than 200,000 end users, ranging from SME's, to blue-chip and public sector organisations.
More than 180 staff are now employed at the company's headquarters on Wetmore Road in Burton and its regional operations in London, Manchester and Guildford. Turnover and profitability continue to exceed all predictions in the face of severe market competition, with turnover set to top the £20 million mark during the current financial year.
Strategic alliances have been developed with all the global names in telecommunications, enabling the company to exploit the very latest technologies and deliver total communications solutions tailored to customers' individual voice and data requirements.
Its response times are recognised as the highest in the industry and it is has been awarded the highest industry accreditations, with the titles of Avaya Platinum Partner, BT Premier Partner, Mitel Platinum and Korus Platinum Partner amongst its growing list of credits.
