Buy-out to help Sheffix unlock growth

A long-serving employee has taken the keys to a Sheffield ironmongery business following a £300,000-backed management buy-out.

Sheffix has been acquired by Brad Wheeler, who joined the company as a school leaver 20 years ago and has run the business for the past four years.

The deal was supported by a £300,000 loan from NPIF II – Mercia Debt Finance, managed by Mercia Business Loans as part of the Northern Powerhouse Investment Fund II (NPIF II).

It provides an exit for Norman and Elaine Pearce, who founded Sheffix in 1984 selling ironmongery and hardware predominantly to domestic customers.

Over the past decade, Brad has led a push into the trade market, with the company now supplying joiners, builders and fire door specialists nationwide.

Sheffix employs five people and has almost doubled turnover during the past three years.

Following the buy-out, 36-year-old Brad plans to expand its customer base and product range, as well as introduce locksmith services for local clients.

He says the expansion could create a further two to three jobs over the next three years.

Brad said: “A small business has to offer something different if it is to compete with the big players. 

“At Sheffix, it is our service and knowledge that set us apart. 

“Clients know they can pick up the phone to us at any time and we will select the right products and quickly despatch them. 

“The buy-out is a really proud moment for me and my family. 

“I’ve always treated the business as if it were my own in terms of my growth ambitions, but being the business owner is an added incentive to take it forward.”

Ian Whitworth, of Mercia Business Loans, added: “Brad’s enthusiasm has helped to transform Sheffix from a ‘corner shop’ business into a national supplier. 

“We are pleased to help him take ownership of the business and pursue his expansion plans.”

Chris Mangle, of Custom Business Finance, advised on fundraising, while Sheffield-based MD Law provided legal advice to Sheffix and Brearley and Co acted as corporate finance adviser.

The £660 million NPIF II fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

Sarah Newbould, senior investment manager at British Business Bank, added: “The Northern Powerhouse Investment Fund II is helping ambitious businesses like Sheffix to achieve their growth plans, and it’s fantastic to see Brad building on the company’s strong foundations. 

“Through investments like this, we’re helping businesses pursue new opportunities, create jobs and contribute to sustainable economic growth across the North.”

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