ICFG UK advises on the disposal of Elmelin
HMT LLP, ICFG member based in the UK, advised the shareholders of London-based manufacturer of industrial electrical and heat insulation products Elmelin Ltd on the disposal of the business to the management team supported by Panoramic Growth Equity.
Founded in London in 1912, Elmelin is a manufacturing business focused on delivering innovative electrical and high temperature insulation solutions. Elmelin is the market leader in the manufacture of mica laminates, used as part of the lining system of coreless induction furnaces used in the foundry and metalworking industry. Its other key products include mica tubes, which have a broad range of applications including in the construction of hand held plastic welding equipment, and mica/microporous board, used in the lining of ladles and tundishes of steel works and foundries.
Elmelin supplies its products principally to Europe, the USA and the Far East, but with a growing presence in developing economies worldwide.
Panoramic’s investment will enable the business to further invest in new end use markets such as the automotive sector where the Company’s products can provide a solution to thermal run away in the lithium ion batteries powering electric vehicles.
HMT, having previously advised the shareholders of Elmelin in 2013 on a partial disposal of the business to the current management team, were engaged to run a process that would allow the majority stakeholder fully exit the business.
Partner Andrew Thomson and Director Ricky Lane acted as lead advisors to both the exiting shareholders and the management team on the transaction which included assessing the strategic options for the shareholders and management, identifying suitable investment partners, negotiating detailed investment terms, tax structuring, financial modelling and project managing the deal to a successful completion.
Terry Hughes, Managing Director of Elmelin commented:
“HMT were mandated to find an investment partner to support the management team in a secondary buy out for the company but also one that would allow Elmelin to accelerate its growth plans and enter new markets. Andrew and Ricky provided support and advice throughout the process."
Andrew Thomson commented:
“We are delighted to have advised Elmelin on another transaction after the disposal in 2013. Since then, the business has delivered strong growth and entered into new and exciting markets. With Panoramic’s support Elmelin and the Management Team will be able to reach their ambitious growth plans. “