Management buyout for Yorkshire manufacturer
A Yorkshire manufacturer which saw its profits hit last year by the loss of a major customer is looking to the future after its managing director completed a secondary management buyout.
Managing director Phil Leonard has led the deal for Red Dog Linings, which rebranded from Triten last year. It follows on from a partial management buyout in 2013.
The Barnsley-based company, a hardfacing specialist offering services to reduce abrasion and impact in bulk materials processing plants, now plans to push ahead with growth into new markets both domestically and internationally.
Leonard said: “This secondary buyout is the culmination of a lot of hard work by the team which enables us to really build on our current success and expand on the incredible achievements made to date.
“We’re incredibly excited about the future of the business.”
In accounts filed at Companies House for the year to April 30, then-named Triten International saw a 5.6% drop in turnover from £6.6m in 2015 to £6.28m, predominantly due to the closure of SSI Steelworks in Teesside in September 2015, which was a major customer.
Profit in the period also dropped from £427,887 in 2015 to £109,408.
The company exports nearly two thirds of its products and plans to increase turnover by 40% over the next few years.
Employing 85 people, the company’s products are used in a variety of industries including steel, cement, waste-to-energy, chemical and recycling.
Marcus Armstrong, partner at Shulmans and corporate finance solicitor, who acted for Red Dog Linings on the original purchase and the secondary buyout, said: “Phil and the team have created an impressive business model and are looking to increase turnover by around 40% in the next few years. Now the buyout is complete, its investment programme will see the company secure the latest technology, further developing its offering and workforce.”
Matthew Chenery, Barclays relationship director arranged the funding for the deal and said: “This transaction is both a significant and pivotal milestone in the company’s history as it paves the way for further expansion and growth. The management’s ambitious plan is testament to their success and we’re delighted that we’ve been able to support with funding for their secondary management buyout.”
The buyout was also facilitated by James White and Geoff Thomas at Brown Butler.
