£875k Funding Package to Support MBO of Merseyside Metalworks
22nd July 2008
A Liverpool manufacturing business has undergone a management buy out with finance package which includes funding from Alliance Fund Managers and RBS.
Merseyside Metalworks Limited based on Cotton Street in the city centre, is one of the North West’s largest manufacturers and installer of specialist ductwork for use in heating and ventilation systems.
Its UK-wide customer base includes big names within the engineering services industry including A&B Engineering, Haden Young, Baileys, Rotary, Bombardier Transportation, Crown House Technologies and EMCOR.
The funding, which totals of £875k including £300k from AFM through the MSIF Mezzanine Fund, will allow three existing employees Jim Galvin, Carl Farrington and Mark Horrigan to take over the 30 year old business from exiting managing director Stuart Howard.
Mr Galvin said: “Collectively we have worked for this business for 70 years and we are thrilled at this opportunity to take over the reins. We will continue to deliver a quality service to all customers and above all ensure that our excellent safety standards are maintained. We also intend to capitalise on the potential for us to tap into new markets and grow our client base. Our aim is to ensure that the next thirty years are as successful as the last.
“We would like to thank all the staff for their loyalty, everyone who was involved in the MBO process and especially Stuart who has given us a lot of encouragement and support and without who this excellent opportunity would not have become available.”
AFM investment director Malcolm Jones said: “The new management have many years experience between them in this business and we have every confidence in that they will build on the company’s progress to date.”
Paul Gresham, commercial bank manager with RBS said: "Merseyside Metalworks is a well established business that has an excellent reputation in the market. The new management team have considerable expertise and under their direct guidance I expect the business will continue to perform strongly."
Steve Stuart of The Steve Stuart Partnership who provided corporate finance to the management team said: “It is tremendous to see a leading national supplier of ducting moving to the next generation; with all the ongoing/new work about there are some real exciting opportunities ahead for the business and its management team.”
Merseyside Metalworks employs 120 full time staff and around a further 60 agency staff.
Legal advisors involved in the transaction were Andrew O’Mahony of Brabners Chaffe Street for AFM and Phil Whitehurst of DWF who acted for the management. Financial due diligence was undertaken by Dan Jackson of Langtons.
Ends
For further information please contact Angela White at AFM on 0151 242 6376.
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