TMCnet News

Firm's founders sell majority stake to management team ; BUYOUT: Trio acquire majority ownership of precision rubber mouldings company [Derby Evening Telegraph (England)]
[October 22, 2014]

Firm's founders sell majority stake to management team ; BUYOUT: Trio acquire majority ownership of precision rubber mouldings company [Derby Evening Telegraph (England)]


(Derby Evening Telegraph (England) Via Acquire Media NewsEdge) A MANAGEMENT buyout has been completed at a Derbyshire manu- facturer of precision rubber mouldings. Hatton-based SRM Industries has seen founders Mike and Yvonne Spare hand over the day-to-day run- ning of the firm, opening a new chapter in its development. Managing director James Rodgers, sales and marketing dir-ector Paul Barton and finance director Martin Spare are now responsible for the growth and development of the operation. The team has acquired majority ownership of the company although Mr and Mrs Spare have retained a significant financial stake and will continue to provide consultancy services. Established more than three dec-ades ago, SRM Industries is a man-ufacturer of precision rubber mouldings with a varied portfolio of products. It both makes and supplies gas-kets, rubber mouldings, rubber-to - metal bondings, elastomer mould-ings and other products. Mr Spare said: "Having estab-lished and developed SRM for over 30 years, Yvonne and I realised that it was time to hand over ownership and responsibility. "In undertaking the management buyout, we recognised the import-ance of preparing for the transition period and managing the expect-ations of our staff members and loyal customer base. "The deal marks the beginning of a very exciting era for SRM and we have great confidence in James, Paul and Martin." The corporate finance division of Derby-based accountancy firm Smith Cooper advised on the deal. Smith Cooper's John Farnsworth and David Crump assessed the viability of several deal structures and the availability of funding before managing the proposed deal, preparing heads of agreement, advising on the production of the business plan, leading negotiations with the funder and working with the buyers and sellers and their respective legal advisers through to completion. Other divisions of Smith Cooper advised on tax aspects of the trans-action and on the financial mod-elling of the client's forecasts. Mr Farnsworth said: "Over the past 30 years, the SRM team has built an excellent reputation within their industry. "The acquisition will be the start of another exciting chapter in the life of SRM and, with a recovering world economy, particularly in the UK, I believe that the management team can look forward to a sustained period of growth and success." Legal advice to the sellers was provided by Murray Macnab and Jennifer Geary, of Ellis-Fermor and Negus, while Duncan Taylor and Alice Rees, of Nelsons Solicitors, advised the management team. The deal was funded by an HSBC team led by Alison Burton and Darren Joyce, advised by Anna May-field of legal firm Gateley.



(c) 2014 ProQuest Information and Learning Company; All Rights Reserved.

[ Back To TMCnet.com's Homepage ]