21st July 2012
Hewitsons advises business on first-of-its-kind charity acquisition
Hewitsons law firm has advised a Northamptonshire-based textiles company on an acquisition deal with the Salvation Army worth almost £13 million - the first of its kind in the charitable sector.
Kettering Textiles Ltd was purchased by the Salvation Army’s Wellingborough-based trading arm, the Salvation Army Trading Company (SATCoL), for an initial asset value of £2 million, with an additional projected consideration of up to £10.75 million, based on performance over the next three years.
SATCoL previously worked in partnership with Kettering Textiles to collect material from over 5,000 textile recycling units and door-to-door collections throughout the UK. However, the takeover will see SATCoL aim to increase its profitability and help secure long term revenue, with the deal expected to see SATCoL earn an extra £34 million in pre-tax profits over the next four years.
David Browne, Head of the Corporate Team at Hewitsons in Northampton, said: “This is an excellent outcome for our client and an extremely positive move for both organisations involved. It gives SATCoL total ownership of the clothing collection operation, which will in turn improve profitability to help provide long term sustainable income to support The Salvation Army’s charitable work across the UK. The day-to-day running of Kettering Textiles Ltd will also not be affected by the take-over and the deal will safeguard all staff jobs.”
For further information contact David Browne at email@example.com or on 01604 233233.