Public sector procurement consortium Yorkshire Purchasing Organisation (YPO) has entered an agreement to acquire a provider of school supplies for £50m.
YPO, which is owned by 13 local authorities, is looking to acquire Findel Education from Studio Retail Group for a gross consideration of £50m on a debt free, cash free basis.
The board of Studio Retail Group said the deal is in the best interests of its shareholders.
Simon Hill, managing director of YPO, said: “Bringing together these two organisations will enable YPO to continue to grow its core activity of providing value for money and excellent service to its education and public sector customers. This is an excellent example of local authorities acting in a collaborative and commercial manner to provide benefits to local communities across the whole of the country.”
The deal is conditional upon shareholder approval and obtaining clearance from the Competition and Markets Authority (CMA). The deal is expected to go through in 2020 subject to the relevant clearances.
Phil Maudsley, CEO of Studio Retail Group, said: “Education has undergone a digital transformation over the past two years, and we are confident that YPO represents a natural new home for the business.
“We believe this transaction is in the best interests of all Studio stakeholders, allowing us to focus on driving further growth within our core Studio value retail business. I would like to thank our colleagues at Education for their hard work and wish them well for the future.”
John Hamer and Ed Ainscoe from law firm Walker Morris advised YPO on the the deal.