The holding company of a major agricultural machinery firm has acquired John Deere dealership Rea Valley Tractors, based near Shrewsbury, in Midland-advised deal.
Dunstall Holdings’s subsidiary Agricultural Industrial Services (AIS) has bought Rea Valley Tractors, one of the largest John Deere dealerships in the UK, for an undisclosed sum.
Finance for the deal was provided by the Birmingham Corporate Banking Centre of The Co-operative Bank.
Dunstall Holdings chairman and owner Simon Clarke said: "This acquisition significantly enhances the group’s scale and reach which will allow us to invest further in our facilities and staff to ensure that our customers continue to experience market-leading levels of service."
AIS, based in Derby, and Rea Valley Tractors (RVT) are the John Deere dealers responsible for Staffordshire and Derbyshire and Shrewsbury and mid-Wales respectively.
Both businesses will continue to trade under their separate identities, having retained all existing staff and facilities.
Plans are underway to relocate RVT’s main site from Pontesbury to a new bespoke building on a seven-acre site on the outskirts of Shrewsbury later in 2011.
AIS managing director Robert Ball said: "When we eventually move to the new Shrewsbury premises, we will have a great deal more space with purpose-built workshops, increased spare parts capacity and a new-style John Deere Place showroom, as befits a flagship dealer."
Justin Sparks of Springboard Corporate Finance, who acted as lead adviser to Dunstall Holdings, said: "It is an encouraging sign that financial institutions are beginning to seek to support businesses making strategic acquisitions.
"In addition, it further demonstrates that the Midlands’ finance community can help well-run businesses to access finance and get deals done."
The Birmingham Corporate Banking Centre of The Co-operative Bank provided the funding for the acquisition of Rea Valley Tractors and the new headquarters building and working capital facilities.
Richard Hornsey, senior business development manager at The Co-operative Bank’s Birmingham Corporate Banking Centre, said: "This was a great opportunity presented to us by Springboard to finance the growth of AIS.
"I am sure this will provide the platform for an exciting future for this group of companies."
Lichfield solicitors Keelys, led by head of corporate David Williams and supported by Martyn Brierley, James Chisholm and Ravi Sandhu, acted for Dunstall Holdings and David Beech from Irwin Mitchell Solicitors provided legal advice to The Co-operative Bank.