£100M 4-way merger completes to create SYNETIQ

Motorhog, Car Transplants, DH Systems and FAB Recycling have completed their ground-breaking merger on 28th February 2019 to create SYNETIQ, the UK’s largest motor dismantler in a deal valued at over £100 million.

The merger deal is the result of 12 months of positive dialogue between the merger parties who have all experienced strong trading performance in the period to completion.  The new SYNETIQ business is market-leading, with significant capacity, scale, infrastructure, compliance and a uniquely integrated IT service. SYNETIQ has ambitious plans for further growth.

The SYNETIQ business will employ over 450 people and anticipated year 1 turnover will be c£120M.

Tom Rumboll at TR Advisory provided advisory services to shareholders and transaction project management alongside KPMG who provided corporate finance (Christian Mayo, Stewart Cape, Ed Crocker and Amrit Bhogal), legal (Nick Roome, Edward Bartlett and Rachel Reeves) and tax advice (Mike Linter, Nathan Potton, and Nilesh Patel) to SYNETIQ on the transaction.  Dow Schofield Watts (Rob McCarthy) provided Financial Due Diligence.

Christian Mayo, who led the deal team for KPMG, said: “UK salvage is highly fragmented and this merger creates a business of significant scale and national reach to challenge the largest players in the industry. Critically, the combined business now has considerable firepower to drive investment throughout the organisation, leveraging some really exciting technology and R&D capabilities, to push forward its growth strategy.”

Tom Rumboll at TR Advisory said: “It has been a real pleasure to help deliver this unique transaction that has met all shareholders aspirations. The creation of SYNETIQ has showcased a different approach to capturing and building value, and having worked with the shareholders closely for the last 12 months I have been struck by their commitment, trust, pragmatism and conviction throughout.“

On behalf of all shareholders Synetiq Group Managing Director Richard Martin said: “The 1^st March marks an exciting new chapter for all of us. In combining our individual businesses to create SYNETIQ, we have a business with a fantastic range of complementary skills, experience and capability, with significant physical and technological resources. SYNETIQ is in a strong position to provide the best possible service to our clients, customers and the industry.”

Press Contact: Tom Rumboll, TR Advisory

Tom.Rumboll@TRAdvisory.co.uk

Doncaster – General Release on 15^th February 2019

SYNETIQ Launches on March 1^st – Delivering higher standards

SYNETIQ is the new name for the merger of the well-established and highly regarded industry leaders, Motorhog, Car Transplants, FAB Recycling and DH Systems.

No Cash for salvage – providing complete transparency

We are happy to announce that from March 1^st when SYNETIQ starts trading we will NOT be accepting cash payments for vehicle salvage. In consultation with insurance companies and spearheaded by West Midlands Police, we have taken the voluntary step to rule out cash transactions and provide complete transparency and traceability.

West Midlands Police Chief Superintendent Chris Todd welcomed SYNETIQ’s decision and urged other salvage auction houses to follow suit. ‘SYNETIQ are setting a great example: they are listening to police concerns over the rise in stolen cars and are taking steps to make it more difficult for crime gangs to exploit the salvage vehicle industry.’

Allianz’s Chief Claims Officer, Graham Gibson said ‘We fully support SYNETIQ’s decision to decline cash payments for vehicle salvage. As one of the largest commercial and fleet vehicle insurers in the UK we agree that the responsible management of salvage is important and doing all that we can to support this important area and helping to make Britain’s roads safer is top of our agenda.’

Richard Martin – Group MD of SYNETIQ said ‘I am delighted that SYNETIQ is leading the industry with regard to compliance and transparency. We have worked closely with our clients and the authorities and will continue to drive up standards and trust, in both our business and the industry.’

GDPR – Protecting personal data, whatever form it is held in.

Modern vehicles increasingly hold more and more data about their owner and drivers. This can range from sat-navs to integration with mobile phones or black box systems for insurance tracking.

We have deployed GDPR compliant processes across our business to ensure that personal data is guarded at every step. All personal data is removed from vehicles and systems before they are disposed of to ensure that data isn’t inadvertently ‘sold on’ with the vehicle or any components.

Our IT systems are all hosted within the UK so when we work with insurance companies to process a claim personal data never leaves our shores.

Our new fleet is ready to roll

Work is well underway preparing our vehicle fleet to proudly promote our new brand. Watch out for them on the road.

ENDS

NOTE TO EDITORS

Motorhog, Car Transplants, FAB Recycling and DH Systems have merged to create SYNETIQ. Each of the four businesses share the same values and commitment to clients, compliant processes, reputation, peo­ple and the environment. This, alongside the new businesses’ combined capability, scale and experience, makes SYNETIQ the platform for their ambitious drive to do even more for clients and the industry.

With a market-leading proposition combining unrivalled scale, capacity, know how, great people and technology SYNETIQ is set to become the ‘go-to’ choice for an industry that values safety, compliance, efficiency and strong partnerships. We have ambitious plans for growth, built upon trusted partnerships and integrity.

The SYNETIQ name is new but the people behind SYNETIQ are well-known and highly regarded industry figures, who between them have over 250 years of industry experience.

Press Contact: Tom Rumboll, TR Advisory

Tom.Rumboll@TRAdvisory.co.uk

UK’S LARGEST VEHICLE DISMANTLERS MERGE TO CREATE MARKET-LEADER

Further to the announcement of merger discussions in May 2018 between the most progressive and successful salvage and dismantling companies in the UK, Motorhog, Car Transplants, FAB Recycling and DH Systems can today confirm a “game changing” merger is set to for the 1st March 2019 to create SYNETIQ, a market-leading service provider in the salvage, dismantling, green parts and support service arenas.

The newly-created SYNETIQ business combines over 150 years’ experience in this sector, bringing the very best of the Motorhog, Car Transplants, FAB Recycling and DH Systems businesses into a single, unified organisation under the SYNETIQ brand.

The new SYNETIQ company has significant scale and capacity, operating 16 fully licensed and accredited sites across the UK, with a fleet of over 100 collection and delivery vehicles and having processed c100,000 vehicles in the last 12 months. SYNETIQ has over 50,000 registered auction customers and sells in excess of 35,000 vehicles and 250,000 parts per year. SYNETIQ employs over 400 people and anticipates a first year turnover in excess of £120m.

SYNETIQ and their clients will benefit from the significant investments each individual business has made over recent years in infrastructure, capacity, people and process – investment which has seen the Motorhog and Car Transplants businesses between them achieve ISO 9001, 14001 and 27001 in 2018. Additionally, by incorporating systems integration expert DH Systems, SYNETIQ can offer fully IT-integrated solutions to their clients, to create a bespoke solution.

Whilst the SYNETIQ name is new, the Board and wider team at SYNETIQ are well-known and respected industry figures who share the same principles, values and ambition. The focus on clients, customers, innovation, compliance and positive environmental impact will remain unchanged but be delivered even more effectively and efficiently as part of the combined SYNETIQ company.

SYNETIQ has ambitious plans for growth, underpinned by their uniquely integrated model, and is well-placed to deliver a best in class service to an industry where compliance, reputation, the environment and safety is of paramount importance.

Richard Martin – SYNETIQ Managing Director said

“We are thrilled that SYNETIQ has been created to take the great work we did at Motorhog to another level. By combining the best of all our businesses we can offer a fantastic solution to our clients and customers, and in doing so, help do our bit for the environment.”

John Schofield – Founder and Managing Director of Car Transplants and Director of SYNETIQ said

“This is a proud moment for me and the team at Car Transplants. We have built our reputation on compliance and excellent client service and to be able to take this forward as part of SYNETIQ means we can do even more”.

Dave Harcourt – Founder and Managing Director of DH Systems and Director of SYNETIQ said

“DH Systems was set up to provide IT services to the insurance, salvage and dismantling industry, so to become part of SYNETIQ and bring this knowledge and expertise to our clients as part of an integrated solution is really exciting”.

Jason Cross – Managing Director of FAB Recycling said

“Having been part of the Motorhog Group since 2017 I have seen just how much investment and development has been made in the operation. The new SYNETIQ business has huge capacity and significant inventory to deploy and with the expected growth in Green Parts, makes us the natural choice for the industry.”

ENDS

NOTE TO EDITORS

Motorhog, Car Transplants, FAB Recycling and DH Systems have merged to create SYNETIQ. Each of the four businesses share the same values and commitment to clients, compliant processes, reputation, people and the environment. This, alongside the new businesses’ combined capability, scale and experience, makes SYNETIQ the platform for their ambitious drive to do even more for clients and the industry.

Press Contact: Tom Rumboll, TR Advisory

Tom.Rumboll@TRAdvisory.co.uk