Fund manager backs MBO at manufacturer
The management team of West Yorkshire manufacturer TEV have completed a buy-out of the business, backed by fund manager YFM Equity Partners.
TEV designs and makes cooling, heating and refrigeration equipment from its Brighouse site, where it employs 56 people. The £8m-turnover company made a pre-tax profit of £1.1m in 2016.
The management team of Tony Hammersley, Chris Chisman and James Carr-Smith, supported by chairman Chris Brown, is now looking to invest in sales and product to accelerate the growth across all areas of the business.
TEV’s managing director Tony Hammersley said he is looking forward to working with YFM “to deliver our growth plans and reach the company’s true potential”.
The deal is the third investment from the YFMEP 2016 Fund, which closed in April.
Ian Waterfield, investment director at YFM, believes the company is well-placed “to harness niche opportunities in the UK and overseas”. Nearly 20% of TEV’s revenues came from international markets.
He said: “TEV has a strong reputation in this industry and has delivered consistent growth over the last few years.”
TEV has two brands, Marstair and Quartz. Marstair supplies air conditioning and refrigeration equipment into a variety of end markets, such as retail, leisure and food manufacture.
Quartz focuses on chilled water cooling solutions for commercial, residential and public sector applications.
TEV was advised by Garbutt + Elliott and Schofield Sweeney.
Legal advice to YFM was provided by Gordons, financial due diligence was carried out by DSW Transaction Services, commercial due diligence by Drystone Strategy Partners, and organisational due diligence and management assessment by Stratton HR. Santander Growth Capital team provided debt finance.
The vendors were advised by Mazars and Weightmans.
