Member Article

Tait Walker makes light work for South Tyneside manufacturer

Chartered Accountancy practice Tait Walker has made light work of boosting business for a South Tyneside-based manufacturer, after assisting with a deal which will play a pivotal role in the company’s venture into new markets.

Tait Walker’s award-winning corporate finance team has assisted Jarrow-based HVR International in the partial exit of two of its shareholders, both of whom will continue to have an involvement with the business – setting the stage for its expansion into the renewables market.

Management advice and fundraising expertise were provided throughout by Tait Walker Corporate Finance team’s Michael Smith and Helen Finn. Longstanding legal advisers to the group, Watson Burton LLP, advised the continuing majority shareholders on the terms of the buyout and related funding arrangements. Bond Dickinson LLP advised the exiting shareholders; and Muckle LLP advised Lloyds, who helped fund the deal.

Formed in 1991, HVR International is a world leader in the manufacture of high voltage, high energy and non-inductive ceramic carbon linear resistors, and has offices in Birmingham and Germany.

The company is a long-time client of Tait Walker, who previously advised on a management buy-out in the 1990s and cites its loyal relationship with Tait Walker as being a key driver in the seamless management of this deal.

HVR International’s Stephen Elliott said: “The recent surge in the UK manufacturing market has seen our sales move from being predominantly export based to growth in business from British companies which is encouraging news - not just for us, but for the UK sector as a whole.

“The completion of this deal stands us in excellent stead to enter the next phase of our business progression, as we look to expand our niche market into other applications where their unique properties are continuing to become universally recognised.

“This deal represents continuity from the outset; continuity in terms of the advisors involved, many of whom have worked with us for a number of years, but more importantly, continuity for our future, as we look to penetrate the renewables sector and drive on the recruitment required to meet additional demand.”

Tait Walker’s Michael Smith said: “We have worked with HVR for a number of years now so we knew how important this element of the deal was to the business.

“This is a firmly established North East business which, despite its international expansion, still has its roots very much in the region – so job security for its employees was a key factor in this deal.”

Robin Adams, corporate finance partner at Watson Burton LLP, said: “We are delighted to have advised HVR on this deal which is clearly an important milestone for the group and its shareholders. It is also very encouraging to see an already successful North East manufacturing business with plans for further growth.”

This was posted in Bdaily's Members' News section by Tait Walker .