Sterling Scaffolding undergoes Management Buy Out in £1m Deal
13th May 2008
A Wirral scaffolding business has undergone a management buy-out in £1m deal which includes funding from Merseyside Special Investment Fund (MSIF).
Sterling Scaffolding Services Limited based in Birkenhead supplies scaffolding to customers in the new housing market. Clients include Redrow, Rushmon Homes and Countryside Properties.
Robin Smith, Sterling’s manager for 20 years, takes over the business as managing director. The previous owners were A1 Pacific Limited.
The £1m funding package includes £350k from MSIF’s Mezzanine Fund, director’s own investment and invoice discounting facilities.
Mr Smith said: “I’m delighted to now own the business I have run for the last 20 years. My sons both work in the scaffolding industry and I decided I wanted to make an investment for the family. They will be joining the company soon and we are looking forward to the future.
“This deal couldn’t have happened without MSIF and we are very grateful for their support.”
Malcolm Jones, investment director of MSIF’s £20m Mezzanine Fund who led the deal for MSIF said: “Robin knows the company inside out and has worked very hard to establish Sterling’s reputation. The scaffolding industry is extremely buoyant due to stringent regulations relating to construction and we believe the business will continue prosper. We are really pleased to be supporting the company and wish the team at Sterling all the best for the future.”
Sterling was set up in 1987 and employs 23 staff. Turnover this year is expected to reach £2m.
Legal advisors involved in the transaction were Andrew O’Mahony of Brabners Chaffe Street (MSIF) and Andrew Whittingham-Jones of Guy Williams Layton (the management). Financial due diligence was conducted by Langtons.
For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040 or Angela.White@afm.uk.com
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Photo shows L-R Malcolm Jones (MSIF) with Barry Smith, Robin Smith and Simon Smith (Sterling Scaffolding)
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