Catalyst was lead advisor on the sale of Thomas Vale Construction to Bouygues Group, the leading French construction business.
Thomas Vale is the Midlands leading construction business focusing on public sector infrastructure and social housing, having traded for over 100 years, consistently delivering over £200m in projects per annum.
Bouygues, headquartered in Paris, has sales in excess of â‚¬30 billion, and has recently started developing a UK wide public sector construction business with previous acquisitions including Leadbitter and Wareings.
What difference did we make?
Having demonstrated an understanding of the M&A landscape in the construction market the shareholders of Thomas Vale asked us to evaluate the potential buyers of the business. This was partly as a result of the pending retirement of 2 significant shareholders and partly the desire to work with a larger group that could bring financial support to enable the business to make the most of the opportunity afforded by the significant changes facing the market. In addition Bouygues had previously made an offer for the business in a process which ultimately aborted.
We were able to provide the shareholders with detailed feedback on the likely buyers to allow them to benchmark Bouygues as the most likely acquirer. Having established that Bouygues had the most compelling strategic fit we then ran a tightly controlled process which ensured that Bouygues committed to a deal structure that they subsequently delivered on throughout the due diligence process, which included taking responsibility for a residual liability in a defined benefit scheme. In addition, we limited the warranty exposure of the shareholders and supported any residual risk with a warranty and indemnity insurance policy.
CFO and shareholder, Thomas Vale