Geldards Advise Rumenco on Acquisition of Net-Tex Industries Limited

A team of Midlands advisors recently advised specialist ruminant nutrition supplement manufacturer Rumenco on its acquisition of Net-Tex Industries Limited.

Geldards' Nottingham based corporate partner Hugh Strickland and Birmingham-based PKF partner Malcolm Cook handled the acquisition. Geldards' team also included Holly Smith, Rena Christou and Chris Sing who advised Rumenco on a large share purchase. Financing was provided by Lloyds Bank Corporate Markets fronted by relationship director John Clay.

Burton-on-Trent based Rumenco has been supplying livestock farmers in with feed supplements, minerals and nutritional products for over 40 years.

Formed in 1983 Net-Tex Industries Limited supplies a comprehensive range of products to the veterinary and agricultural industry. From its base in Kent the company provides nutrition and animal husbandry equipment products to over 40 countries.

Following the deal, Rumenco and Net-Tex Industries Limited will continue as independent businesses with both companies developing their services and respective product ranges for the agricultural merchant and distribution trade.

Commenting on the deal, Rumenco chairman, Frank Heap, said “There is a very good level of strategic fit between the two companies. Both are successful manufacturers of different but complementary ruminant product ranges. In addition, Net-Tex is active in equine and pet markets.”

Geldards partner, Hugh Strickland commented: “Rumenco has achieved outstanding growth in recent year’s thanks partly to its focused export strategy. Net-Tex is a great fit with Rumenco’s existing portfolio and its strong customer base will further strengthen its foothold in the market.”

Malcolm Cook of PKF said: “The deal makes excellent strategic sense for both parties. PKF and Geldards developed a close working relationship with Rumenco’s management team in order to structure a deal that provides the combined group with a strong platform for continued expansion in the future. The transaction signals an impressive start to the New Year for PKF’s corporate finance team in the Midlands and follows a very strong 2011.”