Management buy-in of CGH Group
HMT advised on the European management buy-in of CGH Group.
CGH is a well-established manufacturer and distributor of large above and underground fuel storage tanks, together with related equipment. CGH is the largest manufacturer of its type in Europe and has a dominant market position in Poland and Scandinavia.
CGH is based in Bydgoszcz, Poland, Belgium and Denmark. The fuel tanks are manufactured from the main operation in Poland and sales are predominantly generated in Poland with distribution businesses in Belgium and Denmark. The tanks are sold to oil companies including Shell, Orlen and BP as well as petrol station refurbishers.
The management buy-in team comprised Mr Robert Loosemore and Mr Chris D’Hondt, both having extensive retail petroleum experience.
Mr Robert Loosemore commented:
“This is a fantastic opportunity for the management team and with the recent expansion of the EU into Eastern Europe has meant that large parts of Eastern Europe have to upgrade petrol storage facilities to comply with EU standards. This is providing CGH with a platform for sustained growth. This has been an extremely demanding acquisition process and I am very grateful to HMT for their immense support during the transaction”.
HMT assisted in negotiating the transaction on behalf of management and securing the funding to complete the deal.
“We are delighted to have played a key role in the process. The demanding timetable placed upon us by the vendor as well as securing the funding made the success of the transaction a notable achievement. This is a sector with huge growth potential and I anticipate that CGH will go from strength to strength. Whilst this transaction was secured mainly on debt, at some point there will be an opportunity to introduce other equity partners”.