Durham environmental firm acquired in MBO following multi-million pound HSBC funding
Durham geo-environmental consultancy, Arc Environmental Ltd has been acquired by the business’s directors in an MBO following seven-figure funding from HSBC UK.
The funding has enabled directors Darren McGrath and John Ditchburn to take ownership of Arc Environmental.
The firm employs 13 people in Durham and provides geo-technical and geo-environmental data and guidance to architects, contractors, engineers and local authorities across the UK.
Under the new management, the business will look to expand, based on its business model which has proved successful for the past 13 years.
Darren McGrath, director of Arc Environmental, said: “Our ambition was always to carry out an MBO once the business was profitable and successful.
“Once the time was right to put our plans in to practice, HSBC UK showed real enthusiasm to help us drive the deal forward. The bank’s team were great to work with and we’re grateful for their support and expertise throughout the process.
“In time we would like to expand and grow the business. We want our current staff to have the opportunity to progress within the company whilst also expanding the workforce.
“The two previous owners have agreed to remain as consultants for a period of 12 months and will provide invaluable advice as and when required.”
The finance was allocated from HSBC UK’s national SME Fund, which aims to actively support UK SMEs. The new £12bn SME Fund was recently announced by HSBC UK, with £350m committed to supporting SMEs in the North East.