Advised Snell & Wilcox, a digital media infrastructure provider, on its sale to Lloyds TSB Development Capital and subsequent merger with Pro-Bel
Mar 2009
acquired by
$100 million
  • Sector: Systems & Deep Tech
  • Deal Type: Private Equity Deals; Venture Capital Exits
  • Engagement type: Sellside
  • Size: $100 million

– Founded in 1973, Snell & Wilcox Group (“Snell & Wilcox”) is recognised as a leader in the design and development of infrastructure solutions for digital media markets

– The company designs and builds the world’s most advanced systems for video conversion, infrastructure, and production switching

– Its products are used by thousands of customers in the broadcast, postproduction, cable, satellite, and IPTV markets

– The Company has a blue chip customer base of more than 1,000 active customers

– Lloyds TSB Development Capital (“LDC”), the investment arm of Lloyds Banking Group, is a leading private equity company in the UK mid-market

– Since 1981, LDC has completed over 400 investments and has ongoing interests in over 60 businesses across the UK

– LDC invests in a broad range of sectors and has particular experience in financial services, healthcare, industrials, IT & software, leisure & media, retail and consumer

– Arma Partners acted as exclusive financial advisor to Snell & Wilcox on its sale to Lloyds TSB Development Capital and subsequent £72 million merger with Pro-Bel Limited (“Pro-Bel”), an LDC portfolio company

– As part of the transaction, Advent Venture Partners, the majority shareholder in Snell & Wilcox, reinvested in the merged company alongside LDC. Financing for the transaction was provided by The Royal Bank of Scotland and HSBC

– The merger of Snell & Wilcox and Pro-Bel will create one of the market leaders in the global broadcast equipment sector – a market estimated to be worth over $25 billion. The enlarged business will have a combined turnover of approximately £80 million, employ 450 people and service over 2,000 customers globally

– Snell & Wilcox had received inbound expressions of interest due to its unique technology and product capabilities

– Arma Partners was engaged to manage a sell-side process for Snell & Wilcox which involved a number of strategic and financial buyers in both the US and Europe over the length of the process

– Arma Partners worked closely with the Snell & Wilcox team to clearly articulate the key value drivers for the business and explain its unique market position

– Arma was able to drive this competitive process to completion, despite the backdrop of a rapidly deteriorating economic environment, highly volatile equity markets and a depressed M&A market

– The transaction involved the raising of bank financing during one of the most difficult leverage environments that we have ever experienced