BTG McInnes Corporate Finance News

Green energy plant planned for Sheffield

uat — Thu, 05 Apr 2012 15:13:53 GMT

A new green energy company is proposing to build a £20 million combined heat and power (CHP) plant in Sheffield.

The Community Renewable Energy Centre is being developed by the new business Mediena Ltd and its trading arm UYE (UK) Ltd, which have been advised by the BTG Corporate Finance team in Birmingham. Additional biomass fired CHP projects are also being considered.

BTG Corporate Finance has helped to raise a six-figure development capital fund to secure the necessary planning and environmental consents.

Steve McMullan, a Birmingham-based BTG Corporate Finance director, said the funds had been secured through a consortium of private individuals.

The plant, which would be biomass-fired, using recovered timber, such as demolition wood, will be sited on brown field land on the Holbrook Industrial Estate.

It is designed to produce over 33,000 megawatt hours of renewable electricity each year. The recovered heat will be sold to a nearby local authority district heating scheme. There is also potential to supply heat to other local consumers.

The use of renewable biomass fuels for the production of the electricity and heat will mean that over 18,000 tonnes of carbon dioxide will be prevented from being released into the atmosphere each year.

Mr McMullan said: “A planning application has now been submitted to the council. If all goes well then building work would start in the last quarter of this year with a completion date before the end of 2013.

“Sheffield has always been very supportive of green energy and would like to become one of the first self-sufficient cities in the UK. This project is aligned with that strategy. The management team are also looking at other CHP projects in Sheffield and the surrounding areas, of a similar size and investment level.”

Stephen Brooks, a director of Mediena Ltd, the company set up for the overall development of the projects, said: “Sheffield has had a great reputation for delivering innovative renewable and green energy projects for the last twenty five years. We see this project as being a way of extending that great reputation for the next twenty five years.

“We have been quietly working on this project for the last two and a half years and a considerable amount of research has gone into refining our plans for this and other similar developments across the country.” Legal advice on the fund-raising was provided by Tom Durrant of Gateley in Birmingham.

BTG Corporate Finance advises management team on successful MBO

uat — Mon, 30 Jan 2012 15:30:43 GMT

Jeff Barber and Helen Lowe of BTG Corporate Finance in Manchester have advised the management team in the successful MBO of Metropolis Group Ltd.

The Company operates the most successful independent recording and production facility in Europe. Many household names have recorded albums at the studio including Queen, The Rolling Stones, Paul McCartney, Oasis and the late Amy Winehouse.

The acquisition was led by Managing Director, Ian Brenchley and funded by Twenty Ten Capital LLP, with Parminder Basran taking a seat on the Board.

Commenting on the MBO Jeff Barber said:

“Metropolis has had to deal with some significant changes within the industry over the last few years. However the Company is now well positioned with the new management team for a period of sustained growth.”

Parminder Basran said:

“After our investment in lp33.tv (online music channel and joint venture partner for the McDonald's Channel) in California, USA, the Metropolis Group is our second media and entertainment deal at Twenty Ten Capital and our first in the UK. We feel we have backed an extremely youthful, bright and energetic management team to firmly move the group to become a modern, forward thinking and innovative digital media, gaming and entertainment business.”

MBO for Chemoxy International

uat — Tue, 03 Jan 2012 09:00:00 GMT

Ian Stark and Martyn Bainbridge have led the management buyout of The Dow Chemical Company’s custom processing facilities at Middlesbrough and Billingham, Chemoxy International Limited. The transaction completed on 31 December 2011.

Chemoxy International Ltd is one of Europe’s largest providers of custom manufacturing services to blue chip petrochemical and speciality chemical companies. In addition, the company manufactures a range of environmentally friendly solvents which are used in the latest generation of paints and cleaning products. The business has a large proportion of exports sales and employs over 80 highly skilled works across the two sites.

The divesture is part of Dow Chemical’s disciplined and ongoing approach to its portfolio management. Both Dow Chemical and the management team believe that the business has a greater opportunity to succeed with a buyer that is focused on operating and repositioning this business.

Ian Stark commented: “We are delighted with the opportunity to conclude the MBO of Chemoxy International. This is a business with a fantastic team of employees and we look forward to continuing to deliver exceptional service to our customers under the new ownership. It has been an eye opening experience for us and we would never have been able to do it without the excellent advice and strength in depth from Dickinson Dees and BTG Corporate Finance.”

Martyn Bainbridge commented: “With more than 50 years of combined experience in operating this custom processing business, we look forward to a great new chapter as an independent company, committed to the long-term success of our valued partners.”

The transaction had a number of complex aspects. Tom Fitzpatrick, partner at Dickinson Dees, comments: “Congratulations to Ian and Martyn for making it over the line. With many large multi-nationals shutting down manufacturing operations in the UK, it is great to be involved in a successful news story, preserving jobs and with exciting plans for growth.”

Shawn Bone and Simon Hewitson of BTG Corporate Finance led the transaction for management including negotiation of all key transaction terms and securing the funding for the transaction which was provided by The Royal Bank of Scotland.

Simon Hewitson of BTG Corporate Finance commented: “Ian and Martyn are a strong management team with a vast amount of experience in the chemicals market. It’s fantastic that we have been able to secure the MBO and we wish the team every success in taking the business forward under its ownership.”

David Wilkinson, corporate relationship director for RBS, stated: “It’s great to be supporting a North East manufacturing business in its growth plans. RBS is looking forward to a long and successful partnership with the team.”

Jobs agency set to recruit under new owners

uat — Tue, 04 Oct 2011 14:38:38 GMT

A Poole-based recruitment agency has been sold after advice from the Southampton office of BTG Corporate Finance.

Capital Public Sector has been purchased for an undisclosed sum by BIL.

The deal will allow Capital Public Sector to further develop its operations particularly in the public sector. Clients include Chelmsford Borough Council, West Berkshire District Council, East Dorset District Council, Stoke on Trent City Council and Burnley Borough Council.

Rosemary Penn-Newman, a partner in BTG Corporate Finance, who acted for BIL, said: “It is business as usual for Capital Public Sector but this should enable it to expand its market as well as its geographic exposure. And that could mean extra recruits.

“This is a good fit for BIL who continue to extend their recruitment services through acquisition.

“It is a new stage in the growth of Capital Public Sector and offers it a bright future.”

Capital Public Sector supplies staff UK-wide to local authorities, concentrating on the revenues and benefits, housing, parking and environmental sectors.

Its aim “is to become the one stop shop recruitment agency for the public sector”.

The firm states: “We have a company policy not to be pushy. From feedback from managers we have found that a lot of agencies out there in the market are too pushy, which is a major dislike. We aim to build long lasting relationships with our clients and candidates.”

BIL believes that this is a business with a great deal of potential and that it can make the most of this strategic purchase. It will be a strong addition to its portfolio.

BIL supplies temporary personnel across driving, commercial, industrial, automotive, IT, technical, accountancy, education, health and social care divisions.

Medical supplies company MBO show banks are open for business, says corporate finance expert

uat — Fri, 05 Aug 2011 09:00:00 GMT

Medical supplies company MBO show banks are open for business, says corporate finance expert

BTG Corporate Finance has advised on the management buy out of Medicina Ltd on behalf of shareholder and Managing Director Ken Harrison.

Jeff Barber, a partner at BTG Corporate Finance, advised Mr Harrison on the deal which sees him take on 100% ownership of the business after obtaining the balance of shares from the co-founder and shareholder, Mark Graham.

Based in Bolton, Medicina Ltd designs and sells medical supplies to the NHS and wholesalers. Jeff explains that the deal will allow the business to move to a new level:

“Mr Harrison is looking forward to driving the business forward under his ownership; exploiting opportunities overseas and preparing to launch a new product base.”

The Royal Bank of Scotland funded the MBO whilst Steve Jarman at Stripes Solicitors provided legal advice to Mr Harrison on the transaction.

Jeff says the deal demonstrates that bank funding is available to the right proposition:

“Much is made of the banks’ reluctance to lend to smaller businesses but this deal demonstrates that the lending is there. Medicina has a strong history of consistent profitability with a good proven management team – it is these credentials that the banks look for in order to fulfil their lending objectives.”

Acquisition of Extra by M3 Capital Partners Ltd

uat — Mon, 04 Oct 2010 10:35:00 GMT

M3 Capital Partners Ltd (“M3”) is pleased to announce that it has today completed the purchase of Extra MSA Holdings Limited (“Extra”) from Swayfields Extra MSA Holdings Limited (in administration) (the “Vendor”) for its investment affiliate Evergreen Real Estate Partners LLC(“Evergreen”). Extra (which will continue to operate under the "Extra" brand name) is a UK based operator and developer of motorway service stations. Extra owns 8 operational sites as well as a development site at Cobham, Surrey. Former Swayfields/Extra Group Managing Director, Andrew Long, will return to serve as group Chief Executive Officer.

Ian Green, Rob Hunt and Edward Macnamara of PricewaterhouseCoopers LLP (“PwC”) were appointed as joint administrators (the “Administrators”) of Swayfields and certain other companies in March 2010.

A syndicate of three banks Royal Bank of Scotland, Barclays Corporate and Santander Corporate Banking have provided acquisition facilities to Evergreen Extra MSA Holdings Limited, the acquisition vehicle established by M3 for the purposes of this transaction. M3 were advised by Macquarie Capital, Clark Willmott, Ernst and Young and BTG Corporate Finance.

Craig Beevers, Partner at M3, said:

“We are delighted to have completed this acquisition which is very much in line with M3’s investment strategy of acquiring and operating best in class real estate assets. Extra is an excellent business that offers the motorist value for money pricing for well known, branded products at strategically located sites on the motorway network. It has the most modern and well designed portfolio of facilities in the UK which seeks to offer customers the best experience on the motorway network.. We are very much looking forward to working with Andrew Long and the existing staff to take the business forward and build on the established business platform.. During the transaction, we have established sound working practises with the Administrators and the Bank and have consolidated relationships which we hope to further build on in future transactions."

Ian Green, partner at PwC said:

“Whilst Swayfields had significantly expanded its operations over recent years, it struggled to service its increasing debt commitments. Consequently, in March 2010, with limited options available to it, the Group sought the protection of administration.

Since then we, along with the employees, have worked exceptionally hard to protect value in the Group and maximise realisations for creditors. We are now delighted to be able to announce the sale of Extra which represents the successful conclusion of a long and detailed sales process.
In addition to realising significant value for the creditors, we are pleased that this transaction will safeguard the jobs of the existing employees of Extra.”

Yorkshire Wholesaler Rescues Historic Lancashire Sweet Firm

uat — Thu, 03 Dec 2009 09:39:51 GMT

Accrington confectionery manufacturer Stockley’s Sweets has been bought out of administration saving the 90 year old firm and securing the jobs of all 38 staff who potentially faced redundancy.

Leeds-based wholesaler Morris and Son (Leeds) Ltd has acquired the business that produces a wide range of boiled sweets, fudge, cinder toffee, Coltsfoot Rock and other traditional confectionery products, in order to strengthen its supply chain and broaden the range of products that the enlarged company can supply to its many wholesale and retail customers.

A whirlwind deal was pulled together in just three days by corporate finance advisers BTG McInnes as there was significant interest from numerous other parties and a quick completion was imperative to secure the deal. The deal, funded internally, sees an injection of working capital in addition to the undisclosed consideration paid for the business.

Founded in 1918, £2m turnover Stockley’s produces nostalgic favourites such as pear drops, chocolate limes, barley sugars as well as traditional cinder toffee and fudges. Over the years, the company has supplied many wholesalers and retailers, but it was the collapse of Woolworths last year that ultimately led to the failure of its parent company, Mr Lucky Bags Ltd on 23rd September 2009.

“Stockley’s has always been a very solid business that was unfortunately dragged into problems caused by the failure of its parent company,” said Andy Needham, managing director of Morris and Son.

“We saw a really good fit between our businesses and have been able to secure a deal with the administrators that saves all the jobs, helps us grow our business and creates more opportunities for Stockley’s too, so it’s a dream deal for us,” he added.

Mr Lucky Bags Ltd supplied products to Woolworths nationally, and the business was dealt a massive blow by a bad debt incurred when the retailer finally collapsed in November 2008 although it continued trading for almost 12 months, before finally collapsing last month when administrators from PWC were called in.

This is the second deal Morris & Son has completed in just five months. In June the company saved six jobs when it bought Manchester based cash & carry wholesaler and confectionery packing business Graham’s Cash & Carry following the collapse of the Loughborough headquartered business.

“The opportunity that Stockley’s presented was very attractive and the deal makes good sense for Morris & Son,” said Steve Roberts of BTG McInnes Corporate Finance.

“The management team led by Phil and Kath Lawson, the highly skilled workforce, and a well established brand and product range, are great assets. The existing strong business combined with Morris and Son financial strength, purchasing power, distribution and operating facilities, alongside many additional routes to market , should see the consolidated business bedding down very quickly indeed,” he added.

Needham became the managing director and majority shareholder of Morris and Son when he bought the firm through an MBI in August 2003.

The company has consolidated its position as a significant operator and supplier primarily in the discount food sector over recent years and has just completed its most successful trading period yet with turnover exceeding £15m in 2009.

The business previously operated from two sites; an 80,000 sq ft wholesale warehouse and cash & carry at Cross Green Industrial Estate in Leeds and the 8,000 sq ft former Graham’s Cash and Carry facility in Levenshulme near Manchester.

Trading has been robust during the credit crunch following increased consumer demand for discount food and non-food products and the subsequent growth of some of Morris and Son key customers. The firm now employs a total of 80 staff across four sites and is actively seeking further opportunities to grow the business through acquisition.

BTG McInnes Corporate Finance Secures Disposal of Food Processing Plant

uat — Mon, 26 Oct 2009 11:07:00 GMT

BTG McInnes Corporate Finance has just secured a deal for the sale of an abattoir and boning plant on behalf of Portsmouth-based food processing business The Chitty Food Group Ltd.

The Guildford-based plant was sold to Anglo Beef Processors (ABP) for an undisclosed sum. The Midlands-based company is actively expanding its beef cattle procurement and processing operations across the south of England and the purchase of the Guildford plant – together with that of a Dorset abattoir earlier this year – has increased ABP’s capacity by around 1500 cattle a week.

“ABP is one of the largest beef processors in Europe and the Guildford acquisition has enabled it to secure the best geographical spread of facilities in the UK processing industry,” says Rosemary Penn-Newman, who heads the BTG McInnes Corporate Finance team in Southampton.

“The Chitty Food Group deal demonstrates ABP’s real commitment to sourcing and processing beef from across the UK and will further strengthen its relationships with beef farmers across the South of England who will be able to process their animals within their own region.

“The positive outcomes of this disposal demonstrate that, despite the global economic downturn, there are genuine buyers out there looking to expand their operations by acquiring the assets of other businesses.”

The Chitty Food Group was established in 1910 as a high street butcher and is still in the ownership of the Chitty family.

BTG Corporate Finance Advises Hargreaves Services plc on £115m Funding Deal

uat — Wed, 23 Sep 2009 11:16:17 GMT

Rapidly expanding Durham-based Hargreaves Services plc has secured funding in one of the region’s largest corporate deals of the past 12 months.

Hargreaves Group is a leading supplier of products and services to the energy, mineral and waste sectors. During the past few years, the £503m turnover business has grown both by acquisition and organically, and has now secured a new debt package to allow for further growth over the coming year.

Sourced from a ‘club’ of five banks, led by existing bankers Royal Bank of Scotland, the deal that was structured and negotiated by the BTG Corporate Finance team in Newcastle will deliver a £115m debt refinancing facility.

Lloyds TSB Corporate Markets, Santander, HSBC and Yorkshire Bank have all joined RBS in providing the facilities, demonstrating the renewed corporate lending that is starting to be seen to following a period of virtual standstill after the collapse of the banking markets in September 2008.

Commenting on the refinancing facility, Iain Cockburn, Hargreaves’ Finance Director, said: “We are pleased to have new finance arrangements in place. Given the current economic climate, we believe the securing of this facility is testament to the strength of the business and its prospects for further progress.”

Established in 1994 as a specialist bulk haulier, the Hargreaves Group has grown, both organically and by acquisition, into a major force in the supply, movement and management of mineral resources and the provision of support services to the energy and waste industries.

“Despite the unprecedented economic conditions this deal is evidence that good quality businesses with strong management teams are still able to secure funding,” said Shawn Bone, partner at BTG McInnes Corporate Finance.

“Hargreaves is a quality North East business and there was a great deal of interest from the banking sector to support its expansion. It is now well positioned to continue its successful track record of growth,” he added.

The Group employs 2,300 staff and operates through four divisions, production, energy & commodities, transport and industrial services. The Hargreaves Group operates over 400 vehicles as well as other sub-contracted haulage stock around the UK and owns numerous collieries, factories, transport depots and manufacturing plants across the country.

Other advisers involved in the deal included KPMG who provided transaction support services, Walker Morris who advised the company on legal matters and Eversheds who advised the banking group.

MBO at Cosalt Saves 20 Jobs

uat — Tue, 21 Jul 2009 10:20:03 GMT

A three-strong executive team led by former sales director James Garland has bought the intellectual property rights, goodwill and plant and machinery as well as taking a five year lease on the firm’s Stockholm Road facility.

Martyn Hadfield, a 25-year veteran of Cosalt will also take a stake in the firm and continue in his role as operations director, while Malcolm Mathieson joins the business as finance director and shareholder.

The business was acquired by Leeds-based turnaround fund Endless in October 2008 after parent company Marine specialist Cosalt Plc struggled to find a trade buyer for the ailing caravan business.

The MBO team stepped in to save the remaining jobs and Leeds corporate financier Will Arnold of BTG McInnes Corporate Finance negotiated the sale of the only remaining division of the Holiday Homes business after the closure of the firm’s Stoneferry Road site and the loss of around 200 jobs.

Cosalt Holiday Homes will no longer build caravans, but instead will concentrate on the growing demand within holiday lodges and homes sectors.

“We have rescued a viable and reputable business that has a great deal of potential, and we have to now work hard to up skill the business from being dormant to returning to steady production very quickly,” said managing director James Garland.

“We will be inviting applications from the former Cosalt employees for the new jobs, and we are confident that we will be able to fill the skilled positions from this source, and hope to steadily build the business to becoming a major employer again in the years to come,” he added.

Cosalt Holiday Homes will now exclusively manufacture and sell high quality lodges to the leisure and UK holiday industry. The deal, structured by BTG McInnes and backed by private investment and working capital facilities provided by HSBC, will see the firm’s workforce double from its current level of ten over the coming weeks.

“The business that the team has acquired is a reputable and viable manufacturer, and has a great chance to grow from base with a great product, excellent manufacturing capability, a highly skilled workforce and a book of orders and strong leads. That any aspect of the Cosalt business could be saved is good news, given the seriousness of its problems,” said Will Arnold of BTG McInnes Corporate Finance.

Production is expected to resume within weeks and a strong order book and pipeline of enquiries for the lodges from leisure operators and holiday parks across the country is anticipated to deliver 60 to 70 units in the next 12 months.

Demand for the lodges is growing as UK leisure operators invest in high quality holiday homes, equipped with en suite bathrooms, gourmet kitchens and state of the art entertainment systems and the firm anticipates turnover in excess of £2m over the coming year.

Two Feet Forward for New Franchise

uat — Tue, 21 Jul 2009 10:12:47 GMT

The new company which will have its head office in xx has been funded by the management team and private high net worth investors.

The business is an exciting new concept which allows parents to buy children’s shoes through the schools at their own convenience – taking away hours of waiting in shoe shops. In addition, the schools retain some of the profit on the sale of the shoes, providing them with an additional income stream.

The concept has been praised by both schools and parents and in a matter of weeks, more than 75 schools have signed up to the scheme. The formal launch however will take place in late August or early September to coincide with the start of the new term.

MD of Two Feet for Kids Ltd, Conor Quealy said: “listening to my wife and other mothers constantly complaining about the difficulties of buying school shoes made me realise that there had to be a better way of doing it. With the help of Jeff Barber and the team at BTG McInnes, the concept has become reality.”

Jeff Barber added: “We meet many people looking to start a new business which at the best of times is difficult but even more so now. However every now and again, we meet someone whose concept is so clearly viable that we have no question in taking on the assignment. This is one of those occasions.”

Secure Future for Fareham Family Firm

uat — Tue, 21 Jul 2009 10:07:06 GMT

Talana Plastics was founded by Trevor Ballard in 1987 and rapidly gained a reputation for excellence in the field of technical injection mouldings, supplying precision products to a wide range of customers including the medical, electrical and leisure industries.

As the main shareholders of the family business approached retirement, the directors sought the professional advice of BTG McInnes Corporate Finance on the options open to them. The underlying strength of the business and its excellent reputation in a niche market indicated that a good sale was achievable, even in the throes of recession.

A deal was completed at the end of May and Talana Plastics is now part of HWH Holdings, a new company under the ownership of Steve Hall and Ian Hunter. The company will continue to operate from its 9,000 sq ft manufacturing base at Fareham Industrial Park and the existing 16-strong workforce has been retained.

“Aside from the value achieved for the shareholders, the most rewarding part of this deal is the knowledge that the new owners have first-hand knowledge of the plastic injection moulding industry and are well-placed to build on Talana’s strengths in a niche market,” said Rosemary.

“It may take a little longer to achieve the best outcome for a business sale in the current economic climate, but there are still positive deals to be done for well-run companies with strong order books and good future prospects.

“I wish the staff at Talana Plastics and the company’s new owners every success.”

BTG McInnes Corporate Finance is part of the Begbies Traynor Group which opened a new Portsmouth office at 1000 Lakeside last month.

Secure Future for Fareham Family Firm

uat — Fri, 10 Jul 2009 11:10:00 GMT

The successful sale of Fareham manufacturing business Talana Plastics has been secured by Rosemary Penn-Newman and Peter Grinyer of BTG McInnes Corporate Finance.

“I wish the staff at Talana Plastics and the company’s new owners every success.”

BTG McInnes Corporate Finance is part of the Begbies Traynor Group which opened a new Portsmouth office at 1000 Lakeside last month.

MBO and Relocation at Controlled Speed

uat — Wed, 04 Feb 2009 10:36:00 GMT

The £3m turnover West Yorkshire firm was established in 1984 and supplies some of the world's leading manufacturers of mobility products. Controlled Speed’s motor controls and assemblies are used in domestic stair lifts, bath lifts and scooters. It also has a rapidly expanding contract electronics manufacturing division which produces bespoke electronic assemblies for a variety of industries.

Burns has taken majority control of the company after buying out his 50 per cent business partner and commercial director Mike Fitzgerald in a cash deal structured by BTG McInnes Corporate Finance.

Burns and Fitzgerald bought the firm in a management buy in deal in July 2000 and since then the business has doubled in size to become a market leader.

“This is a great business with a terrific workforce that we have been able to grow over the past eight years, and the new funding gives us a fantastic platform to take the company to the next stage,” said Phil Burns, CEO.

“We have grown significantly in the last few years but it was becoming increasingly challenging for us to cope with the demand as we had reached capacity in our Brighouse plant. We knew that we needed to make significant investment to take advantage of the opportunities presented to us. This deal, coupled with the relocation to larger premises, marks a whole new chapter for us and will allow us to fulfil our potential,” he added.

Controlled Speed employs 36 staff including highly skilled design and assembly experts. It had reached its production capacity at its Brighouse base and will relocate to a new, purpose-built 15,000 sq ft manufacturing facility in Batley. The new facility will be fully operational by April this year and will allow the business to expand with management planning to grow turnover and the workforce over the coming 12 months.

The board of Controlled Speed is strengthened by the appointment of local business figure David Gravells as chairman, Luke Bigham as technical director and Jim Whittaker of BTG McInnes who advised on the structure of the deal.

The MBO and the relocation have been funded by a package of finance from The Co-operative Bank and Partnership Investment Finance. The Co-operative Bank, whose team was led by Jeff Fryer, provided senior debt and working capital facilities and PIF, led by Duncan Gray, provided equity and mezzanine funding.

“This business is a Yorkshire success story, and the backing from the Co-op and PIF is proof that, despite the general climate there are still good deals to be done for quality businesses. The increased production capacity is the catalyst the business needed and once the firm has relocated it will be able to accelerate its growth,” said Sonia Alghita of BTG McInnes who advised management on the deal.

Jeff Fryer, business development manager at the North East corporate banking centre of the Co-operative Bank, said: “Despite the uncertain economic climate, the Co-operative Bank is still very much open for business and is keen to work with and fund companies with sound business strategies.

“We are in a strong position to provide funding for existing and new customers, unlike some other lenders who seem to be more reluctant to provide funding at this current time,” he added.

“Controlled Speed is a Yorkshire business designing and manufacturing world-class, innovative electronics for a global market. We are delighted to be backing a quality management team and providing funding and support to help them take full advantage of the opportunities available to them,” said Duncan Gray of PIF.

Alex McWhirter, assistant director of business at Yorkshire Forward said: “At a time when there are concerns about British manufacturing it is encouraging that PIF is backing the management buyout of a local company whose prospects for growth and further skilled job creation are very good indeed.”

Management were advised by David Strachan and Emma Garland of Schofield Sweeney in Leeds and other legal advisors involved in the deal included Cobbetts, Keeble Hawson and HLW.

Management Buy In at Tyne & Wear Security Firm

uat — Tue, 03 Feb 2009 10:41:00 GMT

£4m turnover Goldshield was founded by Grahame Shaw and Stan Johnston in 1986. Over the past 22 years it has grown to be one of the North’s leading companies in the supply, installation and maintenance of security devices and systems for care homes and assisted living premises.

The firm’s core business is installing remote personal alarm systems, such as Warden Call and Telecare, as well as door entry, CCTV and fire and security systems to protect the safety of residents and premises in public and commercial care facilities.

Glover has been backed by Royal Bank of Scotland and venture capital fund Infinity Asset Management to take ownership of the company and develop the business in the sector that has massive potential for growth.

The deal, structured by BTG McInnes Corporate Finance, sees the founders selling 100 per cent of the shares in the company in the cash deal but they will remain with the company as directors to support Mr Glover to assist with the planned growth of the business.

“Goldshield has a fantastic reputation for quality, reliability and service thanks in the main to the quality of our workforce and personnel, and this deal gives the business the best possible chance to grow and evolve over the coming years,” said Grahame Shaw

“After 22 years growing a business we are very proud of, we were approached by Stuart Glover and his backers who were looking to invest in building a business in this sector, and who identified our firm as the best strategic base from which to grow,”

“In many ways this will be business as usual, as both Grahame and I will remain in our roles to support Stuart as he comes into the firm. With the backing of RBS and Infinity, and the ambition of Stuart, we can see enormous potential for growth and opportunities for the business and everyone here, and the deal will open up a whole new chapter for the firm,” said Stan Johnston.

Shawn Bone of BTG McInnes, who advised the vendors in the transaction said: “Goldshield has developed a strong brand within its niche markets and installs the UK’s leading security products from leading manufacturers with whom the founders have developed excellent relationships. The deal represents a great opportunity for a fantastic business and North East success story to take the next step forward.”

Mark Irving from BTG McInnes also advised the vendors, and Peter Robinson of Muckle LLP law firm handled the legal work for the exiting founders.

Peter Robinson of Muckle LLP said “Goldshield's founders have developed a strong business over the last 2 decades. It's been great to work with Grahame and Stan and help them both take the business into the next phase of its growth with Stuart. The company has a great future going forward."

Goldshield currently employs 40 engineers and administrative staff from its base at Camperdown Industrial Estate in Killingworth, and as well as the thriving book of business that grew significantly last year.