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Successful Exit For MBO Team At CQC

Watersheds, the Swindon based Corporate Finance Specialists, has successfully completed the sale of CQC Limited for owners Mike Rennie and Pete Gulliford, to a group of private investors led by Simon Morrish, John Pelosi and Paul Perera for a substantial seven figure sum.

CQC designs and manufactures military load carriage, body armour and equipment for the armed services and Special Forces in the UK and overseas.  The Company has supplied equipment to the MOD for use in Iraq and then Afghanistan for a number of years and turned over in excess of £13 million in its last financial year.

cqc

Having acquired the Company as a Management Buy Out from Avon Rubber in the 1990s, the shareholders were approaching retirement age and keen to find an exit.  It was critical to find a buyer with the ability to fund an acceptable purchase price in the current market, but who also brought with them a management team to facilitate the owners' retirement after a sensible transition.  It was also important to them to find a buyer who would nurture and grow the business and its staff, and continue to deliver first class service to its high profile customers across the globe.  John Pelosi, who has a long and high profile track record in the Defence industry, will take over as Managing Director, with Simon Morrish becoming Chairman.

Sue Green of Watersheds commented:

"CQC is a strong and well run business, with a reputation second to none in its industry.  However, we were under no illusion that current market conditions, with limited access to funding and global market uncertainty, would make finding a suitable buyer and an acceptable deal extremely challenging.  The lack of second tier management to replace the owners and the dependence of the business on key defence customers meant that finding a buyer required creativity, perseverance and sheer determination.  After a couple of 'false starts' with buyers who simply couldn't raise the money to do a deal, I am delighted to have been able to achieve a great result for both Mike and Pete, and the Company as a whole.”

Mike Rennie commented:

"It was important to Pete and I that we found the right fit.  We have long since considered ourselves to be the latest custodians of a business which has endured for more than sixty years and we wanted to be confident that a new management team would appreciate and nurture our most loyal workforce.  Sue Green was an ideal champion for our cause; she took the time to understand our business and was able to promote our Company with confidence and professionalism.  The whole process was a rollercoaster experience which Sue was extremely capable of steering to a very successful journey’s end.

We are very pleased that the new team have asked us both to remain as directors and shareholders and we shall use our best endeavours to ensure the Company’s continued success.”

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