M&A Partners acts for Synergy Business Systems in the Successful Sale to Metal Manufactures

Sunday, 3rd April 2022

Latest News: M&A Partners acts for Synergy Business Systems in the Successful Sale to Metal Manufactures

We are pleased to announce that on 31st March 2022, the Board of Directors of Synergy Business Systems Pty Ltd (Synergy) agreed to acquire all of the ordinary issued shares of Synergy

Background to the Transaction.
M&A Partners, as financial advisors to the Synergy Board, were engaged in mid 2021 to advise Synergy on capital raising options for purpose of funding several acquisitions and a sell down of shares by existing shareholders.

In November 2021, M&A Partners launched an Expression of Interest (“EOI”) capital raising process which resulted in several parties submitting Indicative Offers of which two were from major trade buyers that expressed interest in acquiring 100% of Synergy.

Due diligence commenced in late January 2022 and concluded in February 2022 with Metal Manufactures (MM) confirming its offer to acquire 100% of ordinary equity of Synergy. MM subsequently commenced a 30-day exclusive Due Diligence period which concluded in the execution of a formal Share Purchase Agreement (SPA).

Synergy Business Systems
Founded in 2006 as a partnership between 4 Australian industrial hardware suppliers, Synergy Business Systems (‘Synergy’, the ‘Group’) is a 100% Australian owned Construction & Industrial Supply Group that offers the most comprehensive inventory file available to the Australian construction, engineering, and industrial fastener industries. Operating in the highly fragmented, industry hardware supply sector, Synergy is one of the leading industry aggregators in the segment. The Synergy Group comprises c. 20 owned stores and manages a buying group comprising an additional 40 independently owned stores nationally.

Metal Manufactures Pty Limited (MM) Background

MM was established in 1916 and has evolved into a large and diversified Australian industrial and distribution company. Current operations of MM include MM Electrical Merchandising (MMEM, Heymans, TLE, AWM + other brands), MM Kembla, MM Plastics (Graphic Art Mart, Dotmar, AVS & Fluro Pacific), Rushmore Distributors (Repelec, Glbert Lodge & Computer Dynamics in NZ), Seadan Security & Electronics, All Round Supplies and Underground Civil Services. MM is privately owned and employs over 3,000 staff in Australia and New Zealand.

MMEM is a trade wholesale distribution business, specialising in a one stop sourcing & supply solutions and operating from 320 branches across Australia. Customers rely on MMEM for electrical, communications and data, solar, lighting and associated electrical component products.

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