The transaction itself has taken nearly a year to bring to completion from the initial engagement through to final completion on 18 July 2018.
The PwC team advised Manchester based Russell’s Construction, set up by brothers Andrew and Gareth Russell in 1997, on the investment in the business by Wilson Bayly Homes-Ovcon Limited (“WBHO”), South Africa’s largest construction business.
The PwC team was comprised principally of Adam Waller (Tax), Rebecca Rennison (Corporate Finance), Stephen Richards (Legal) and Trevor Milne (SPA) but also employed the skills of PwC professionals in the following cross lines of service areas in order to reach a successful conclusion:
· share purchase agreement advisory
· stamp duty
· employment legal
· property legal
Whilst the main focus for the transaction was Russell’s Construction WBHO, which also owns one of Australia’s largest contractors Probuild and last year bought into London concrete specialist the Byrne Group, also purchased a minority stake in the sister company Russell Homes as well as agreeing to provide on-going funding for both companies.
The tie-up, which will see WBHO take a 60% stake in Russell’s Construction, will now allow both businesses to grow and will unlock the potential for Russell’s Construction to compete for major projects both regionally and on the national stage. Both brothers will remain as shareholders and joint managing directors, and in day-to-day control of the business.
The business, which employs 160 staff at its Trafford Park headquarters, expects to post in excess of £104m next year, with a potential pipeline of a further £40m.
Adam Waller, PwC Private Business partner said;
“We have been acting as tax advisers for Russell’s Construction for a number of years and have undertaken a number of different projects for them. So when it came to selling their business they came to us for tax and deals support. At the same time they asked who they could use for legal advice and support - so I was delighted to be able to confirm that PwC could provide this too!”
Andrew and Gareth Russell of Russell’s Construction commented;
"We have used PwC on advisory projects for a number of years so it was an easy choice to turn to them when considering the sale of our business. We like the fact that the personal and business advice is integrated and that the team have a deep understanding of us and how we work - we want straight forward advice from people we can get on with. This was particularly important as for various reasons the deal took some time to complete. It was helpful to also be able to call on a range of experts from PwC - from legal, tax and deal specialists."
Adam Waller concluded;
“This transaction is a perfect example of how the firm has worked together to provide a truly cross lines of service approach deploying specialist expertise over what was a substantial period of time to ensure the successful completion of this transaction - demonstrating the depth and breadth of knowledge we have as a firm which clearly sets us apart from our competitors’.”
Adam Waller, Private Business, partner