MBO completed at family-run stove manufacturer
A Manchester-based team has provided advice for the successful conclusion of a management buyout at one of the UK’s leading independent family-owned makers of wood and multi-fuel stoves.
Arada, based in Axminster, Devon, has undergone a management buyout led by directors Mark Brettell and Jon Butterworth.
Manchester-based advisors David Middleton of Cole Associates Corporate Finance and Barney Leaf and John McDermott at Laytons advised management on the transaction which was funded by the Manchester office of Leumi ABL and NatWest.
Arada was founded in the 1970’s and the business employs more than 80 staff, with a turnover of £6.7m. The company operates from a 3.86 acre site, encompassing 54,000 sq ft offices, manufacturing and warehousing facilities with established distribution channels in more than 15 countries.
Investment over the years means modern manufacturing facilities and latest technology keeps the company at the forefront of the UK stove industry, and most importantly, maintains manufacturing of all its products firmly within the UK.
The deal sees the current management team of Mark and Jon acquiring a majority stake from the founding Burgis family, who will retain a minority stake in the business. The transaction has provided the business with an appropriate funding structure to facilitate the staggered exit of the long-standing family shareholders, and will help to support the current management team’s future growth strategy.
Mark Brettell said: “Having worked for the original family owners for the past two decades I consider it a great privilege to be able to be entrusted with the future of one of the best known companies within the stove industry.
“It is a credit to all at Arada that Jon and I have the confidence, experience and support to lead what has been, and will remain, an independent company and to take the company forward in a seamless transition.
“Having been through many challenging years the time is seen as right for this change of ownership which will ensure the continuation of the very ethos that has been at the heart of Arada for so many years.”
He added: “I am deeply grateful to the support from the current owners to facilitate the purchase and the dedicated staff who continue to work so tirelessly for the company.”
Jennifer Burgis, whose father founded the business, said: “The legacy of the business was extremely important to our family. We have such a strong heritage in the region and are, therefore, delighted that the long serving management team are taking over.”
Jon Butterworth said: “This is an exciting point in the company’s history, maintaining independent ownership and clear direction for the future development and stability of the business. This announcement is good news for our customers, employees and suppliers.”
The management team was advised by David Middleton of Cole Associate Corporate Finance with tax advice from Richard Massey at Christian Douglass Chartered Accountants.
Legal advice was provided by Barney Leaf and John McDermott at Laytons.
The owners of Arada, the Burgis family, were advised on the sale by Paul Crocker and Matthew Willmott of PKF Francis Clark Corporate Finance. Duncan Sykes, Tim Young, Will Whitt at Foot Anstey provided legal advice.
