We have advised the shareholders of Tier 1 Asset Management Limited (‘Tier 1’) on the sale of its shares to Bridges Fund Management (‘Bridges’) and reinvestment into a NewCo controlled by Bridges.
The deal represents an opportunity for the founding shareholders to realise value and provides the business with a private equity partner which will support the next phase of growth.
Founded by Jonathan Rose and Jonathan Basso in 1995, Tier 1 is a market leader in the UK IT asset management & disposal (“ITAD”) sector. Headquartered in Manchester but serving customers throughout the UK, Tier 1 offers end-to-end ITAD services: hardware collection at the customer's site, a data wipe and refurbishment process, resale of IT assets, and waste recycling. In the financial year ending 31 March 2021, the Company realised revenue of over £16m and employed over 60 people.
The Company provides ITAD services to a range of large corporate businesses, government bodies, and SME clients. As well as receiving numerous awards and recognition for its outstanding ITAD business, including being 1 of only 5 ITAD businesses to be awarded Distinction with Honours by the industry body ADISA, Tier 1 is also consistently recognised for its strong ESG impact – most notably receiving the Queen's Award for Enterprise for its flagship prison workshop programme which has changed the lives of nearly 200 people.
Bridges is a specialist impact private equity investor with an investment thesis centred around building a better future for people and the planet. Bridges was immediately recognised as an ideal partner for Tier 1 given their common values and ability to scale owner-managed businesses to the next level.
Commenting on the deal, Jonathan Rose (Managing Director and Shareholder) said ‘We’re delighted to be partnering with Bridges ahead of our next phase of growth. With support from the team at Mazars, we not only wanted to find an investor who shared our values and our impact focus, but could also help us achieve our growth ambitions - Bridges was the obvious choice, and we worked closely with Mazars to make this deal happen. We’ve built a really strong platform already in the U.K., and with Bridges’ help, we believe we can both scale the business and have an even greater positive impact for people and the planet’.
James Hurrell, Partner at Bridges added ‘We are really excited to partner with Tier 1, which has the potential to become a market leader in the resale and recycling of IT equipment, and an exemplar circular economy business in the UK. In the coming years, we’ll be working with Jonathan and his excellent team to grow the business – both organically and through acquisitions – while maintaining its strong ESG and impact focus, which can make a significant contribution to reducing e-waste in the UK’.
Mazars was engaged by the Shareholders to provide M&A Lead Advisory services and taxation advice. The deal team comprised Dave Hilton, Ryan Imison, Dylan Ibbotson and Hashem Khawaja with tax advice provided by Jon Capper, Ritchie Tout, and Rebecca Currie. The Mazars team worked alongside Hill Dickinson who provided legal advice (Ian Riggs, James Down, and Graeme Anderson).
Mazars advises PE-investment ITAD business
We are delighted to have acted on behalf of the Shareholders of Tier 1 and believe that the transaction represents a great deal for all parties. Dave Hilton Partner - Mergers & Acquisitions
Given Tier 1’s significant focus on ESG, it wasn’t just a case of finding an investor that could help with the growth potential of the business – but matching the investment ethos with that of the company’s was paramount to successfully completing this transaction.
It was apparent from the outset that Bridges’ track record and investment ethos would resonate with that of Tier 1; we look forward to seeing the good work that the business will perform in the future.
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