15/04/2015

Gambit Advises on Pinnacle Office Equipment Management Buyout

Gambit Corporate Finance LLP has acted as lead advisor on the management buyout of Pinnacle Office Equipment, for an undisclosed sum.  Institutional funding was provided by Finance Wales, alongside a significant investment by Clive Hamilton, Pinnacle’s Managing Director.

Founded in 1989 by its former Chairman, Ian Ryley, Pinnacle is an office equipment specialist, providing Xerox hardware technology, managed print services and software solutions.  As a Xerox Gold Premier Partner it operates from the head office in Cardiff and its clients include multinational corporates, SMEs and public sector organisations, with geography covering South Wales, the South-West and the international operations of multinationals generally delivering across the UK, Europe & Ireland.

The management buy-out was led by Clive Hamilton, who has been Managing Director of Pinnacle for 10 years.  Gambit’s team, which has significant experience in the TMT sector, was led by Geraint Rowe and Simon Williams.  This transaction follows the £13 million sale of eLINIA to Adapt Group, raising development capital for QPC Group and the management buyout of Pinnacle Telecom.

Clive Hamilton, Pinnacle’s Managing Director, commented “We have ambitious growth plans as a business. With the launch of our software and broader IT services offering, we are extending the suite of services that we are able to offer to both existing and new customers across Wales, the South West and both the M5 and M4 corridors.  I am confident about the long-term growth opportunity this provides, and am very pleased that we have an institutional investor in Finance Wales that shares this vision.”

Geraint Rowe, Partner at Gambit, commented, “Pinnacle has an excellent market position, arising from its long history in this sector, combined with its high level of customer retention.  The business is very well positioned to enhance its market leading solutions to its clients.”

Simon Williams, Director at Gambit, commented “The transaction further highlights Gambit’s experience and focus on the TMT sector.  It also demonstrates the trend for managed print services and managed service providers to broaden their service offering towards IT solutions and vice versa, to maximise the opportunities existing within their customer base.”

Established SMEs make a significant contribution to the Welsh economy and management succession is key to its future success.  Finance Wales has backed 99 businesses with over £33 million of succession investment enabling ambitious management teams to take over the reins of established Welsh companies.

Senior Investment Executives, Stephen Galvin and Cenydd Rowlands structured the Pinnacle investment.

Commenting on Finance Wales’ investment, Stephen Galvin said:  “Wales is home to a significant number of owner-managed businesses, so management succession is an important and growing challenge for the Welsh economy.  We’re delighted to include Pinnacle in Finance Wales’ management buy-out portfolio and hope investments like this will inspire the next generation of Welsh business owners.”

Cenydd Rowlands added: “Pinnacle has evolved to offer a broad product range that includes some highly technical solutions for its customers.  This has enabled the company to achieve a high level of customer loyalty.  We’re pleased to back Pinnacle’s management team as they implement their ambitious growth plans.”

Capital Law acted as legal advisors to the management buyout team.  Blake Morgan and Broomfield & Alexander acted for Finance Wales.