Sentio Partners has advised the shareholders of Cutwel on the sale of the business to Inflexion Private Equity Partners (Inflexion). Following a period of strong growth and significant investment, the transaction delivers a successful return for NorthEdge, who initially backed the Management team in 2018.
Based in Cleckheaton, Cutwel is the UK and Ireland’s market leader in specialist value-added cutting tool distribution to the SME precision engineering sector. Serving over 13,000 customers across a wide range of sectors through a disruptive sales model, Cutwel provides the largest range of cutting and machine tool accessories stocked in the UK for next day delivery, together with go-to-market support in the UK for its suppliers.
Adam Gillard, chief executive at Cutwel, said: “Our growth plan is focussed on building deeper relationships with existing customers; utilising our digital and data capabilities to acquire new customers; continuing our focus on operational excellence and expanding our product range. It is thanks to NorthEdge’s belief in our team and our plan, alongside their local, practical and commercial support that we are in the position to take this business to the next level.”
John Hammond, director at NorthEdge, added: “We are proud to have played our part in supporting Cutwel achieve strong top and bottom line growth, despite the challenging market conditions the business has faced since our initial investment. By refining and investing in its disruptive sales model and operational platform, the business has continually outperformed competitors whilst retaining its focus on being a great place to work for its people.”
Andrew Barlow of Sentio Partners added: “Having first advised Adam and the team in 2018, it’s been a pleasure to advise the shareholders through this transaction. The aspirations of the management team have been consistently matched by NorthEdge, who have invested ahead of growth at every stage. Cutwel remains a disruptor in its market with significant potential, and we look forward to seeing the business continue to flourish with the support of Inflexion.”
A host of Yorkshire based advisers were involved in the transaction. The shareholders were advised by Sentio Partners (Andrew Barlow, Dave Irwin & Ben Holton) and Womble Bond Dickinson (Simon Pilling, Stacey Hall & Saba Hussein). PWC (Joel Smith & Chris Lodge) led financial and tax due diligence support.
Inflexion’s advisors included Addleshaw Goddard (Richard Hunt, Dave Parker, Caera Loughran). Debt funding was provided by Virgin Money, with Squire Patton Boggs (Tom Telford, Andy Kirkham) providing legal advice.
