Six-figure funding package supports buyout at manufacturing firm

A Sheffield-based metal casting component manufacturer has undergone a management buyout (MBO) with the backing of a six-figure funding package from HSBC UK.

The MBO at Intermet Refractories sees managing director Callum Arthur take full ownership from the business’ former parent company, Sheffield Refractories Limited.

Arthur has over 30 years of experience in the refractories manufacturing industry both in South Yorkshire and internationally, having started his career as a lab technician at a refractories business.

Established in 1985, Intermet Refractories manufactures a range of insulating and refractory specialist components for metal castings moulds.

The business supplies its products to metal foundries around the UK, as well as exporting over 20% of its sales to markets in Western Europe, Scandinavia and Asia/Pacific.

As a result of HSBC UK’s funding, Intermet Refractories is set to invest in new manufacturing machinery and grow its product range for industrial process applications such as foundry, steel making, kilns and boilers.

The business expects to increase turnover by 20% and create five new jobs in the next 12 months.

Callum Arthur, owner and managing director of Intermet Refractories, said: “HSBC UK’s financial backing and guidance gave me the means and confidence to undertake this buyout.

“We’re now looking to drive forward with a number of investments which will see us scale-up our product range, upgrade our production facilities and enter new markets – both in the UK and overseas.”

Ryan Slater, HSBC UK’s relationship manager for South and West Yorkshire, added: “Sheffield has a proud history of metal production so we’re delighted to support a growth hungry business in a related industry.

“Callum has a wealth of experience and a clear plan to grow Intermet Refractories through strategic investments. We look forward to seeing the how the business grows and evolves over the coming years.”