Private equity firm swoops for concrete mixing business in multi-million pound deal
Private equity firm Elaghmore Partners, based in Leamington Spa, has acquired a Lanarkshire-based concrete mixing business in a multi-million pound deal.
The firm has bought McPhee Bros of Blantyre, a leading designer and manufacturer of truck-mounted concrete mixer units, known as McPhee Mixers.
Founded in 1971, McPhee Mixers designs, manufactures and supplies its mixers from its headquarters in Glasgow.
Elaghmore will provide financial backing to support the growth plans of McPhee Mixers which include expanding the existing sites to help deliver a growing order book, new product development, the addition of sales and marketing capability and geographic expansion to capitalise on the company’s intellectual property.
McPhee Mixers, which employs 70 people, will continue to operate autonomously but will become part of Elaghmore’s Total Vehicle Solutions (TVS) Group.
The group includes other Elaghmore acquisitions, SB Components and Priden Engineering.
The group also has plans to expand internationally. The TVS Group under the ownership of Elaghmore has annualised revenues of £50m and operates across four sites in the UK.
Andy Ducker, founding partner at Elaghmore, said: “McPhee Mixers is a strong, profitable company with a growing order book, a track record of innovation and long-term relationships with some of the biggest names in the UK construction industry. It is a valuable addition to our Total Vehicle Solutions Group and expands its capability to offer even more products to its industrial client base from a growing number of sites across the UK. We are excited about working with the management team at McPhee Mixers to build on their success including growing its existing sites, developing new products and securing a foothold in other geographies to exploit its intellectual property.”
Brinsley McFarlane, managing director, McPhee Mixers, said: “McPhee Mixers has a long and enviable record of success within the engineering industry, and we have ambitious plans for the future. Working with Elaghmore will help us deliver these, which is demonstrated by their track record in backing companies like SB Components. It is an exciting day for our skilled and dedicated workforce as well as our customers as we look to build on our success so far as part of the TVS Group.”
McPhee Mixers is the fourth acquisition made by Elaghmore from its initial private equity fund, Elaghmore I (Fund 1) which closed at the end of 2016, raising £60m.
Mills & Reeve advised Elaghmore.
