Offer goes unconditional as US investor seeks to take UK contractor private
ISG chief executive David Lawther has quit the role just two months after the contractor was bought for 拢85m by US investor Cathexis.
Lawther (pictured) has been replaced by ISG stalwart Paul Cossell, who has been at the firm 20 years, latterly as managing director of ISG鈥檚 fit-out and engineering services business for five years.
Lawther had led the ISG board in opposing the Cathexis takeover for ten weeks, before performing a U-turn once it became clear the US investor was on course to acquire the 50% of its shares needed to force the deal through.
Lawther said: 鈥淚 am pleased to leave the company at a time when it faces a new and exciting future as a private entity.
鈥淧aul has an impressive track record of growing profitable businesses in ISG and I wish him the very best in his new role.鈥�
Cossell said: 鈥淚 feel incredibly privileged to be appointed CEO of this great business as we embark upon the next stage of our journey under private ownership.
鈥淲e are by nature ambitious and innovative at ISG, and under our new ownership we have the opportunity for significant growth.
鈥淲e will build on our market-leading credentials to be recognised as the best brand in the construction sector, offering an unbeatable customer experience.
On 17 February the ISG board reluctantly backed the bid but said it still believed the offer undervalued the company.
ISG鈥檚 board initially rejected both offers by Cathexis for the company, including the ultimately succesful offer of 拢1.71 a share, or 拢85m. Cathexis鈥� original offer, made in December, was for 拢1.43 a share, or 拢71m in cash.
At the time of the deal, Tony Williams, analyst at 黑洞社区 Value, said: 鈥淭he Americans have played a blinder and have pretty much herded ISG to the exit for a knock down price.鈥�
Cossell added: 鈥淚鈥檇 like to take this opportunity to thank David for the great contribution he has made to ISG after 15 years with the business and wish him the very best for the future.鈥�
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