DJH helps deliver manufacturing deal

A North West professional services group has helped complete a manufacturing deal.

DJH, which operates eight offices across Manchester, Altrincham, Bury, Chester, Nantwich, Liverpool and the Wirral, advised S&S Steelstock on its purchase of Trident Sections in Kingswinford.

The deal was delivered within a short timeframe and positions the enlarged business to create new jobs as it expands across the automotive, construction and electrical markets.

The transaction drew on DJH’s in-house specialists across corporate finance, VAT and fundraising. 

A seven-figure funding package was secured through HSBC UK via the firm’s commercial finance team, combining a cash-flow loan, commercial mortgage and invoice-financing facility.

Lewis Pearson, corporate finance director at DJH, said: “This is a fantastic purchase that brings together two-well established Black Country businesses, who collectively have more than 60 years of industrial heritage between them.

“S&S Steelstock has a long-standing background in supplying products to the auto supply chain, and this deal gives it the opportunity to capitalise on Trident Section’s expertise in specialist narrow slitting, whilst also expanding into galvanized steel capping and channel works – predominantly for the electrical wholesale market.”

Lewis, who led the transaction on behalf of DJH, added: “The two firms share similar manufacturing values of quality and deliverynperformance, and this deal creates efficiencies of scale and the ability to bolster on complementary capabilities to the S&S offer.

“Importantly, the two businesses will now both be operational from the 15,000sq ft manufacturing facility in Kingswinford, creating immediate additional capacity and helping to reduce lead times to customers.”

Melissa Orpe, area director for HSBC UK, added: “In completing this acquisition, S&S Steelstock is acting on a clear opportunity and securing the future of valuable manufacturing jobs in the heart of the Black Country.

“When the business case was made to us, it became apparent that this move adds supply chain stability to the sector, whilst opening further growth opportunities for the business. 

“We’re excited to see what the future holds for this partnership.”

S&S Steelstock, a long-standing client of DJH’s Bury office, supplies mild steel coil, plate and sheared blanks and sought advisory support on the acquisition as part of its growth strategy. 

Bosses say the acquisition strengthens S&S Steelstock’s operational capacity and market reach, forming a key step in the company’s wider expansion plans.

Chris Downs, director of S&S Steelstock, added: “We are passionate about UK manufacturing and the opportunity to bring Trident Sections into the family represented a perfect fit that will hopefully lead to growth and new jobs.

“DJH has a been a superb partner on the deal. 

“It meant we could use one specialist for 99 per cent of the transaction and this allowed us to focus on everyday business activities, whilst the purchase was being formulated and completed. 

“Despite all the complexities, it has been a relatively smooth process!”

DJH also worked closely with legal advisers at Knights to support completion of the deal.

Luke Pritchard, corporate partner at Knights, added: Luke Pritchard, Corporate Partner at Knights, concluded: “Every successful transaction relies on strong partnerships. 

“DJH led the financial strategy, whilst we ensured the legal framework was watertight, incorporating advice from our corporate, real estate, banking, tax and employment teams.

“We were delighted to advise the buyers and are excited to see how the business develops under the leadership of Barry, Chris and Jon.”

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