Management buyout for £18m turnover manufacturing company
Following a Management Buyout (MBO) a new team has taken the helm at Brighouse-based Siddall and Hilton Products.
Supported by Yorkshire professional advisers, Clarion and RSM, the acquisition for an undisclosed sum of holding and property companies Mantis Holdings and Mantis Investments, has resulted in the formation of a new holding company – Blackfish Enterprises.
In its full accounts made up to 31 March 2018, Siddall and Hilton reported a turnover of £18m and pre-tax profits of £684,000.
Founded in 1898, Siddall and Hilton Products is a producer of welded steel mesh high-security, general fencing and industrial mesh panels. With a 53-strong complement of staff at its West Yorkshire headquarters, its products are exported to Ireland and throughout Europe. The company will continue to trade under the long-established name of Siddall and Hilton Products.
In 2015, Neil Stewardson led an MBO with Ian Thurley enabling the exit of the Siddall family, with the new management driving the business’s geographic expansion and product diversification.
Stewardson’s shareholding has now been bought by a consortium of existing management group members led by Thurley, who takes on the role of Chief Executive, together with co-investors Morgan Beresford-Lambert, Finance Director; Andrew Lingard, Purchasing and Quality Director; Simon Butterworth, IT and Communications Director; Neil Sutcliffe, Sales Director; and Pam Jackson, ERP Manager.
The MBO, which completed on 16 August, was funded by ABN Amro with support from the company’s mortgage provider, Barclays, and supplemented by equity investment from the shareholders.
A group of Yorkshire advisers supported the transaction including Hitesh Tailor of Clarion in Leeds and Richard Wilson of RSM who advised the management; and Lester Wilson of DWF in Leeds who advised Stewardson.
Having successfully led the business since 2009, Stewardson now leaves Siddall and Hilton Products in order to focus on other interests and investments including a partial MBO at HPC Laser that completed in 2017.
Commenting on the deal, Thurley said: “The MBO represents the next stage in the evolution of Siddall and Hilton Products. Having placed the business on a sound footing for the future, our focus will be on improving long-term sustainability through greater employee engagement and involvement, ensuring we create a ‘one team’ ethos which builds on the loyalty, dedication and commitment already amply demonstrated by our staff.
“This latest investment further strengthens the business, enabling us to work towards our ambition of being the most efficient, profitable and environmentally friendly wire mesh producer in Europe as well as being an outstanding local employer.”
Hitesh Tailor, of Clarion, said: “Siddall and Hilton is a long-established business with a clear direction. With such an experienced and ambitious group at the helm, they have a bright future ahead.”
