Specialist advice by Watersheds allows innovative monitoring company to grow for the future

Established in 1987, Harpenden-based Exertherm has developed innovative solutions in continuous thermal monitoring, enabling organisations to stay productive, increase safety and reduce downtime due to electrical failures.

With the rise of digitisation, the business’s innovative technology has harnessed the potential of the Industrial Internet of Things to offer solutions that are ahead of the curve.

However, when it came to planning his exit strategy, Exertherm founder Ross Kennedy knew it was imperative to find a buyer for the business that would not only be able to develop and grow the technology and momentum achieved across the last 36 years, but also one that would recognise and value the ethos of the company.

With an impressively low staff turnover rate, and many members of staff having worked for Exertherm for a number of years, the business is a tight-knit community with a real family feel, so for shareholders it was important the buyer had the right cultural fit to continue into the future.

Ross turned to Watersheds to achieve a deal that would meet the goals of all parties.

A deal has now been completed with global intelligent power management company Eaton to acquire Exertherm. Eaton manufactures products for the data centre, utility, industrial, commercial, machine building, residential, aerospace and mobility markets to help solve the world's most urgent power management challenges.

Ross explained: “The time was right to exit the company, but I also wanted to ensure I was handing it over to new owners who would be able to bring the business to its full potential as well as securing the future of our current staff too.

"The advice and support I received from Watersheds was invaluable and they achieved top value, as well as ensuring a smooth process of selling the business to a global business and the complexities that come with selling internationally.”

Wendy Lam, Partner at Watersheds, explained: “Watersheds has worked with Exertherm for a number of years and their technical expertise combined with their foresight of the industry has enabled them to grow to hold a strong position in this interesting and fast-growing market.

“As a result of our deep understanding of the business and the potential offering to buyers, as soon as the time was right for them to go to market, we could work with them to identify the best routes for them to take and to maximise the value of the business.

“Eaton is exactly the kind of organisation they wanted to see their business in the hands of and therefore, we are happy we could help fulfil their wishes with a deal that was too good to refuse.”

The deal was also supported by Laytons ETL for legal advice and Claritas for UK tax advice.