Hill Dickinson advises MSS Group on acquisition by Stellex Capital Management

Stellex Capital Management, a middle-market private equity firm with extensive experience in industrial businesses and family successions, has announced a new platform investment in Bryden Capital Limited (BCL) and MPL Group Limited (MPL), together the MSS Group (MSS or the ‘Company’), a leading supplier and manufacturer of critical electronic components, focused on the global power industry. The financial terms of the transaction were not disclosed. This is Stellex’s second acquisition in Europe in 2023.

Based in Manchester, United Kingdom, with manufacturing operations in India and Poland and distribution facilities in the USA and across Europe, MSS is a provider of design, engineering, manufacturing, and distribution services to the global power industry, which is anticipated to grow at double-digit rates over the coming years. The Company’s core sectors are electric transmission and distribution, power storage, and high current DC power systems. Since 1973, the Company has been providing international customers with solutions that have enabled the growth of the power distribution and power storage markets. The Company’s product portfolio includes electrical connectors, battery cell components, electromechanical assemblies, and bespoke designed DC busbar systems.  

“Stellex has a strong track record in partnering with families and investing in industrial businesses to support them in their next phase of growth,” said Mark Redman, managing partner at Stellex. “MSS is a critical partner to its customers, thanks to its ability to be a one-stop shop providing the required services and solutions. We are excited to support MSS’ organic and international expansion plans. Our goal is to help MSS climb the value chain and capture new markets while continuing to be a trusted, world-class partner to its blue-chip customers in the global power market.”

As part of the transaction, Brian Hall, MSS’ founder, and Liam Hall, MPL’s key shareholder, will reinvest in the Company alongside Stellex. The current management team, including Chris Hall, managing director of BCL, and Liam Hall, managing director of MPL, will continue to lead the delivery of MSS’ growth initiatives by leveraging its existing joint capabilities. To further support the management team, Stellex has introduced Hamdi Conger to the role of chairman. Hamdi Conger is a seasoned executive with previous senior experiences at companies such as Alstom and Tractel.  

“I’m thrilled to partner with Stellex as it leverages the strong platform we have built at MSS and takes advantage of the positive tailwinds in our key end markets.  We have carefully built a strong culture of collaboration with customers, focused on industry-leading delivery and quality. We now believe the Company is ready to grow to the next level,” commented Brian Hall. “We plan to create value for both MSS’ customers and employees and to become an even more valuable manufacturing partner.”

Chris Hall and Liam Hall said, “We are excited for the road ahead with Stellex as we grow the MSS Group platform both organically and inorganically. Our vision is to become a global one-stop shop for OEMs.”

King & Spalding provided legal support to Stellex, PricewaterhouseCoopers supported Stellex’s commercial due diligence for the transaction and Deloitte provided financial and tax advice. MSS was advised by HSBC on the transaction and further supported by Hill Dickinson on legal matters, KPMG on financial matters, L.E.K. Consulting on commercial vendor diligence, and Jamieson Corporate Finance supporting management through the transition from owner-manager to a PE-owned company. 

Ian Riggs, national head of Hill Dickinson’s Corporate team commented: “As a leading supplier and manufacturer based in Manchester, this transaction marks a significant step for MSS Group, helping to bolster its position in the market as well as boosting its credentials both at a national and international level.

“Providing legal support to the MSS Group team has been a great success and one that we’re particularly proud of. Given the scale of the deal, our approach required joint input from our leading lawyers across our corporate, banking, commercial, real estate and employment teams, allowing us to pool expertise while ensuring a streamlined, coordinated approach at all times.”

Also involved in the transaction for Hill Dickinson were partners James Down and Sean Lightfoot (Corporate), Alasdair Mackinnon (Banking), senior associate Graeme Anderson, associate Laura Marginson, trainee solicitor Joel Bailey and paralegal Oliver Hart.