Manufacturer targets growth after undergoing MBO
A Stoke-on-Trent manufacturer has undergone a management buyout after securing a £2m funding deal.
Hallmark Sheet Metal, which produces hi-spec sheet metal products, received joint backing from Santander Business Banking and UK Steel Enterprise (UKSE).
Formed in 1996, the company has grown by focusing on the manufacture of low volume, complex sheet metal components via processes such as laser cutting, robotic bending and welding. It is a highly automated business with 20 staff operating two shifts.
The firm is a regular supplier to a number of Original Equipment Manufacturers (OEMs) within a broad range of sectors including cable management, military, electronics and consumer goods.
The £1.5m from Santander Business Banking contains a mixture of growth capital and a commercial mortgage. The former was handled by Simon Clewlow on behalf of the bank.
Santander’s Growth Capital loans are targeted at UK businesses with annual turnovers of up to £50m, which have a demonstrated history of high year-on-year growth in turnover, profit or employment.
The £500,000 equity investment from UKSE contains a mixture of shares and loans, and has assisted with the acquisition of Hallmark Sheet Metal, alongside investment for growth.
UKSE is a subsidiary of Tata Steel and provides equity and loan finance up to £1m to growing companies on terms that are individually negotiated for each investment, with economic regeneration the primary objective.
John Kennedy, Operations Director, Hallmark Sheet Metal, said: “There are significant opportunities across a number of sectors and we will look to capitalise on these going forward. The funding and support from Santander has been invaluable throughout the MBO process and we look forward to working with them further.”
Stuart Kelly, Relationship Director at Santander Business Banking, added: “The business has excellent growth forecasts, and is strategically targeting additional businesses to support the excellent client relationships they have already developed.
“Hallmark is meticulous in its production process, much of which is automated, ensuring very high-quality manufacturing. Overall the business has a great track record of consistent growth, and we are delighted to be supporting them.”
Allan Wood, Regional Representative at UKSE, said: “Hallmark has been at the cutting edge of its sector since it was established in 1996. With a fantastic reputation for quality, service and exciting expansion plans, we are confident that the excellent new management team will be able to continue the growth trend seen over the last few years.”
