Our North East Member Firm Assist With Management Buyout
Over the past couple of years there have been some changes at Barnard Castle based Steel Fabricator S&A which have now resulted in the sale of the building fabrication side of the business in a management buyout.
With the support of our North East member firm Tait Walker, the business has been purchased by the MBO team at S&A Fabrication, which consists of sales director Simon Pelly and senior estimator Jonathan Kirk. They will take over the daily running of the business and future growth plans, with the previous owners Geoff and John continuing to work on a consultancy basis.
Tait Walker worked with commercial law firm Mincoffs Solicitors and HSBC UK alongside the MBO team to ensure a smooth process throughout for all parties. Barnard Castle-based S&A Fabrication Ltd, specialises in manufacturing steel framed buildings for the agriculture industry, as well as producing a range of commercial and industrial buildings. Established in 1978 by Geoff Simpson and John Allinson, the firm is known for its popular Roundhouse Buildings Solutions business, a concept which brings advanced, innovative building design to the agriculture market.
Originally starting the work in June 2017, Tait Walker have been advising Simon and Jonathan at S&A Fabrication Ltd throughout the entire MBO process, as well as assisting with raising finance from HSBC UK to fund the transaction.
Michael Smith and Lucy Elliott from our National Corporate Finance team, worked with Tax Associate Adrienne Paterson to provide transaction and tax advice on the deal structure and Paul Shields who heads up the Durham office. Associate Solicitor Chris Hughes of Mincoffs and Martin Glaholm of HSBC UK advised on the movement of cash through the group structure and the legal process.
Michael Smith commented:
“We are delighted to have assisted Simon and Jonathan on the successful MBO of S&A Fabrications and Roundhouse Building Solutions.
Through our collaborative approach with Mincoffs Solicitors and HSBC UK, we have played a key part in securing the long-term future of the two established North East companies.
We are confident the group will thrive under the new management team with support from HSBC. We wish them every success going forwards.”
The Corporate Team at Mincoffs Solicitors (which included associate solicitor Chris Hughes who led on the acquisition, Partner John Nicholson and paralegal Bri Cheng) worked closely with the firm’s Commercial, Commercial Property and Employment teams to deliver advice to the management team on the transaction.
Chris Hughes from Mincoffs Solicitors added:
“The team and I were delighted to act for Simon and Jonathan on the management buyout and are proud to have played our part alongside Tait Walker and HSBC UK in delivering the transaction and ensuring continuity for the staff. We wish Simon and Jonathan the best of luck with their future plans for the group”
Commenting on the MBO, previous owner John Allinson said:
“Geoff and I are thrilled that Simon and Jonathan have been able to fund this purchase and will continue with the S&A and Roundhouse brand. We wish them every success and we’ll always be here to offer help and support when required.”
HSBC UK facilitated the transaction of S&A Fabrications Ltd by listening to what was required from management teams and putting a suitable finance structure in place.
David Slane, Area Director for HSBC UK in the North East, said: “As soon as we met the management teams at both S&A Fabrications and Roundhouse we had great confidence in their vision for the future of the businesses and the retention of jobs for the local area. We listened to what was required from both sides and put a suitable structure in place to facilitate the management buyout. We place great importance on supporting local businesses, communities and economies and this deal evidences our ability to support companies across a variety of sectors in the North East.”
If you have any questions or if you would like to speak to us about your business, please contact Hannah Farmborough or call on 0207 429 4147 to be put in contact with a member of our Corporate Finance team.
This article originally appeared on the blog of our member firm, Tait Walker.