Heating firm completes MBO in locally-advised deal
A heating and plumbing products manufacturer has undergone a management buy-out in a deal advised out of Birmingham.
Tesla UK, based in Minworth, makes and supplies products to national and independent merchants and distributors in the UK and overseas, generating a turnover in excess of £10m.
The company, established in 2009 by entrepreneur John Hardcastle, stocks a broad product range but has specialist knowledge of domestic cooker hoses and immersion heaters.
The firm’s management team, led by Trish Quinn, has acquired a significant majority stake in the business with funding support from Barclays.
Shareholders were advised on the MBO by Springboard Corporate Finance.
Mr Hardcastle said: “Following a review undertaken by Springboard I felt that a vendor assisted deal was the best way of realising value whilst protecting the unique culture of Tesla.
“I am delighted to be handing over the reins to such an experienced team, who I’m sure will deliver further growth and success in the future.”
Ms Quinn added: “This transaction presents a great opportunity for myself and the wider management team. We look forward to continuing to develop innovative products and to maintaining and growing our customer and supplier relationships.”
Springboard also assisted in the fundraising process, with the transaction being led by partner Ben Bolt, assisted by Jonathan Wright and David Lee.
Mr Bolt said: “We are really pleased to have been able to support John on the sale of his business and to have assisted with the fund raising to facilitate this transaction. John had the vision to not only grow a business with a strong service ethos and product focus but also to recruit a great management team capable of continuing to develop the business. We wish them all success for the future.”
Legal advice to the management team was provided by Higgs & Sons, led by partner Adrian Cutler, who was assisted by Jamie Partington.
The shareholders were advised by Chris Wright, of Blackhams Solicitors. Lee Clarke, Relationship Director in the Black Country Corporate Team, led the transaction on behalf of Barclays.
