Maven backs MBO of hoses maker Dantec
A FAMILY-owned North West manufacturer of composite hoses has been sold to its bosses in a deal backed by equity house Maven Capital Partners.
Dantec Hose Ltd, based at the Tarran Industrial Estate, Moreton, Wirral, grew sales by around 8% to £5.5m in the year to the end of April. Its managing director, sales director and operations director will now drive the business forward with the backing of Maven’s Manchester-based team.
Dantec, which employs around 50 people, primarily supplies the petro-chemical industry. Its hoses provide the vital flexible connection in many fluid transfer systems, and are used worldwide in applications such as unloading road, rail and marine tankers in chemical and oil plants, and even to refuel Formula 1 racing cars.
The business was sold by Eric Davies, who has now retired from Dantec. Financial terms of the deal were not disclosed but the deal is understood to be under £10m.
Maven said the deal represented an ‘excellent opportunity’ for it to invest in a profitable, niche manufacturing business with a proven track record and good growth potential.
Exporting to new territories including Australia, India, South Africa and Japan is set to drive the expansion.
Managing director John Laidlaw said: “Dantec is very happy to have secured funding from Maven Capital Partners to complete our MBO. The management team have targeted a high level of growth and it was essential we chose a partner with similar ambitions to help fund this expansion.
“In Maven we have found a partner with an excellent oil and petro-chemical pedigree, as well as an investment team with a strong track record of working with growing businesses like ours.”
Ryan Bevington, investment director at Maven Capital Partners added: “Maven is delighted to be investing in a business which has such a strong brand name and offers unrivalled expertise in the sector.
“Dantec’s niche position and global customer base has helped the business achieve solid financial performance against the backdrop of a worldwide recession.
“The continued high demand for its products will mean Dantec is in an excellent position to increase its share of the global market by leveraging its technical expertise and reputation.”
Bevington told TheBusinessDesk.com the deal was all equity and there was no new bank debt provided.
“The bulk of our investment has been to buy the business, but there is some funding for growth there. We’ve been working on the deal since June and it’s good to have completed it as volumes are not exactly bouyant.
“Dantec is a quality manufacturing business with some exciting growth potential, and we expect it to continue to perform well.”
Gary Houghton and James Wild from Baker Tilly’s corporate finance team acted as lead advisers to the management. Gateley provided legal advice to Maven on the MBO, with a team led by corporate lawyers Paul Jefferson and Jemma Bolton.
Other advisers Neil Robinson and Kevin Simmons at Mazars (Financial DD), James Sheridan, Andrew Sturge and David Hayes at Turner Parkinson (management) Jim Rutherford at Oval (Insurance due diligence) and Calash (commercial DD).
