Preston scrap metal merchant in ‘great position for future growth’ following buyout

Scrap metal merchant Tom Martin & Company has undergone a management buyout.

The deal, completed with support from Yorkshire Bank, saw the Preston-based business acquired by its existing senior management team following the retirement of majority shareholder and finance director Sean Hallinan.

Yorkshire Bank’s corporate and structured finance team, based in Manchester, provided a funding package to facilitate the transaction and support Tom Martin’s future aspirations.

George Brettle, managing director of Tom Martin & Co, said: “We have worked together as a management team for a number of years and will of course be sad to see Sean step down from the business.

“However, we are excited at the opportunity to deliver further growth for what is already a very successful business.”

Founded in 1948, Tom Martin operates from two sites in Preston and Manchester, with a third located in Poland. The company handles thousands of tonnes of metal annually.

Yorkshire Bank’s senior director of corporate and structured finance, Craig Cheetham, commented: “We have worked with Tom Martin for 15 years, we have developed an excellent relationship with the business, having now supported them through three management buyouts, and we look forward to supporting the senior management team in the next phase of its development.”

Corporate finance firm Clearwater International acted for the management team on the transaction.

Clearwater director Tom Barnwell said of the deal: “This is the third time Clearwater International has advised an existing Tom Martin management team through a management buyout, which demonstrates the strength of the business and its attractiveness to funders.

“With the continued support of Yorkshire Bank, George and the team are in a great position for future growth.”

The Tom Martin & Co management team was advised by Clearwater partner Michael Reeves, director Tom Barnwell and associate Zack Goddard. Law firm Pinsent Masons served as the management team’s legal advisers.

Outbound shareholder Sean Hallinan was advised by law firm Brabners. Squire Patton Boggs provided legal advice to Yorkshire Bank.

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