North East advisors assist in County Durham manufacturing firm buyout

Barnard Castle-based Steel Fabricator S&A has announced the sale of the building fabrication side of the business in a management buyout (MBO).

This is due to the result of major changes at the company in the past two years.

With the support of North East advisors, the Barnard Castle business has been purchased by the MBO team at S&A Fabrication, which consists of sales director, Simon Pelly and senior estimator, Jonathan Kirk.

Pelly and Kirk will take over the daily running of the business and lead on future growth plans, with the previous owners Geoff and John continuing to work on a consultancy basis.

Accountancy firm, Tait Walker - with Mincoffs Solicitors and HSBC UK - has been working with the MBO team to ensure a smooth process throughout for all parties.

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.

Michael Smith and Lucy Elliott from Tait Walker’s 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 said: “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.”

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.

Chris Hughes, of 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.”

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