Technical Fibre Products Ltd (TFP) announced that it has entered into a definitive agreement to acquire PV3 Technologies Limited (PV3), a company which specialises in the development and manufacture of electrochemical materials used in the creation of green hydrogen. The acquisition is the latest step in TFP’s growth, building on recent capacity expansion, and it will increase TFP’s portfolio of products for hydrogen technologies to provide new opportunities for growth and market penetration.
TFP is a subsidiary of James Cropper PLC (LSE: CRPR) and a leading advanced nonwovens manufacturer, supplying materials into a wide range of markets including aerospace, defence, composites, wind energy and fuel cells. The company has been committed to advancing hydrogen fuel cell technology for over three decades, building the capacity and expertise to establish an already
strong position in the market.
Director Patrick Lynch from Castle Square advised the PV3 Technologies shareholders on the transaction. Led by corporate partner Adam Kudryl and supported by associate Callum Giliker, the Harper James corporate team provided legal advice and support to the PV3 Technologies shareholders. Ross Jordan from accountancy firm Sutton McGrath Hartley (SMH) advised and assisted on
various matters for the shareholders throughout the transaction.
An Interview With Ross Jordan ACCA Senior Manager, SMH
What matters did you assist on?
SMH (Sutton McGrath Hartley) have acted on behalf of PV3 Technologies Ltd and its shareholders for a number of years. Over this period there has been a number of potential parties expressing interest on the acquisition of PV3, but it has never been at a time that was suitable for the shareholders. This deal, however, arrived at the perfect time and at a point where its shareholders could see the real benefit of PV3 being acquired by such a well-established company in TFP, which will really take PV3 to the next level and see its full potential.
With the assistance of my team at SMH, we worked on various areas of the deal alongside the legal advisers and corporate finance advisers with a particular focus on the financial due-diligence, agreement of heads of terms and the financial structure of the sale.
Did you come across any challenges along the way? If so, how did you overcome them?
Deals of this nature always contain challenges, the main one in this case was the impact of the COVID-19 pandemic on the way we all worked. No physical meetings were able to take place, resulting in lots of virtual meetings, which have as many weaknesses as they do strengths. A minor point can be ironed out easily enough in a face to face meeting, but in a virtual environment with multiple advisers on the same video call, it can prove more difficult.
It has been a really testing year for all professional services firms in terms of the way we all work and operate. I suspect that many firms have had to push forward their plans for modernisation and maximising the use of technology – I know we certainly have!
How did you go about finding the right fit of corporate advisers for this transaction?
I like to work alongside people I know and trust when it comes to assisting my clients. I have known Patrick at Castle Square Corporate Finance for over 10 years, including three years working together at the same firm of regional accountants in North Sheffield.
Castle Square are a well-established local and independent firm of advisers, and I had no doubt they would work well with David and the rest of the team at PV3. The choice was an easy one.
SMH continue to work closely with Castle Square, with many upcoming deals in the pipeline for the next year or two.
Do you expect to see any more deals similar to this throughout the year?
Thankfully, COVID-19 has had little impact on our firm, and I expect 2021 to be just as busy as the year before. I have a number of client deals in the pipeline for 2021 and I am looking forward to pushing these over the line in the coming months.
The impact of the last year will have left many owner-managed businesses in a place of revaluation, so I anticipate the market to be more active over the next couple of years.
What else are you working on in 2021?
I have a number of exciting projects in the pipeline for 2021, most of which will be far more enjoyable in the absence of COVID-19 so I am hoping for better news in that regard. On a more personal note I have recently taken the reins at our Buxton office, following the retirement of Karen Woodburn, so will be splitting my time between Buxton and the Rotherham office I also manage. Hopefully, lots more to come in both areas!
About SMH
SMH, established in 1995, are a multidisciplinary firm of professional advisors based across Yorkshire and the Derbyshire region, looking after clients regionally and nationally. We have offices in Sheffield, Rotherham, Chesterfield, Knaresborough, and Buxton.
Our professional staff have been advising clients and providing in-depth expertise and insight into the complex financial, legal and tax matters which impact business, personal and family interests. Our group contains individual companies that all work closely together to ensure our clients don’t have to go to multiple advisors when seeking professional advice. We are proud to say our professional staff are highly qualified and readily available to assist our clients with their requirements. They include Chartered Accountants, Chartered Tax Advisers, Chartered Financial Planners, and Chartered Legal Executives.
