Rapala VMC Group has finalised the acquisition of 100 % of the share capital of Dynamite Baits Ltd in a transaction originated and led by Cooper Parry Corporate Finance and Geldards law firm.
Nottingham based Dynamite which employees 60 people is, a manufacturer of groundbaits, boilies, liquid attractants, pellets and bagged particle baits for sport fishing.
Founded some 15 years ago, Dynamite manufactures and sells a wide range of baits in particular for carp fishing under its main brand Dynamite Baits and other sub brands. Dynamite is a market leader in premium carp baits in the UK and it has a good market share of the carp and groundbait market in other European countries. In 2009, the net sales of Dynamite were GBP 6.5 million of which some 20% was outside the UK.
Dynamite has its own efficient distribution system in the UK securing deliveries directly to some 1,200 sales outlets within 72 hours from receipt of order. Its products enjoy an excellent reputation for catching fish. The acquisition of Dynamite Baits brings Rapala into an important segment of the bait market in which it has not been represented before.
"Dynamite is an ideal fit for the Rapala family of brands," said Jorma Kasslin, CEO of Rapala. "Their products have a great reputation with anglers and are widely known for their quality. We intend to take this quality brand to the global marketplace via our network of Group distribution companies and to widen their product range. As a result of the Dynamite acquisition we are able to offer a wide range of products including baits, hooks, accessories, terminal tackle and fishing lines to the carp fisherman. In addition, in the UK we are able to combine the distribution of our group products with those of Dynamite."
"It was a difficult decision to sell the business that was founded by my partner and I some 15 years ago," said Marcus Twidale, Managing Director of Dynamite. "But the decision was made easier knowing that the Dynamite product range, quality and good service will continue, and that Dynamite is able to benefit quite significantly from some distribution and product synergies as a member of the Rapala VMC Group." Marcus will continue as the Managing Director of Dynamite after the acquisition.
This acquisition is part of Rapala’s strategy for profitable growth and it will make Rapala a strong player in the growing carp fishing market in Europe. Carp fishing is the fastest growing market in fishing throughout Europe. It contributes to the Group’s brand strategy and portfolio while it leverages Rapala’s unique sourcing and distribution platforms.
Rapala aims to significantly expand its sales to carp fishermen in the next few years by more than doubling Dynamite’s 2009 sales. Before this deal, Rapala had only moderate sales of carp fishing products predominantly in France and few East European markets.
The Shareholders of Dynamite Baits Limited were advised on the sale by David Browne and John Bryant of Cooper Parry Corporate Finance and David Tilly and Debra Martin of Geldards provided legal advice. Commenting on the transaction John Bryant, Director said, "It is fantastic to see a local business become recognised as a World leader in its field and we are delighted to have contributed to its success and ultimate sale."
Geldards Partners David Tilly and Debra Martin advised Dynamite on the disposal, assisted by solicitor, Jenny Allen.
David Tilly said: "We are delighted to have advised Dynamite on this deal. It's a real Nottingham success story and it’s great to see such a forward thinking company achieve success. This type of deal provides a lot of satisfaction for all involved."
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