Storage group Palletower sold to bosses

BOSSES at Palletower, a South Manchester company which is a leading manufacturer and supplier of storage, handling and distribution equipment, have acquired the business in a multi-mullion pound deal.

Financial terms of the deal for the Sale-based company, which supplies retailers, were not disclosed. In 2011 Palletower’s turnover rose from £12.7m to £16.2m and profits increased from £943,000 to £1.3m.

The company, which began trading around 40 years ago, has more than 40 staff and operates from its Sale HQ and has manufacturing plants in China.

The majority shareholder, Paul Hutchins, who previously led a MBO of Palletower in 2001 has now sold the business to the next generation of directors led by Matthew Palmer.

He said: “I have been proud to successfully grow Palletower since my MBO and take great pleasure in selling the business to the next generation of management led by managing director Matthew Palmer.  With sales increasing and an impressive list of clients, I am confident Palletower is well-placed for the future.”
 
Matthew Palmer joined Palletower in1993 and commented:  “I am delighted that we have been successful in undertaking this MBO of Palletower.  The company is poised for further growth and development and we look forward to the next stage of the journey.”
 
A number of North West advisers acted on the deal, which was funded by HSBC and HSBC Invoice Finance.

Legal advisers to HSBC was Lancashire firm Napthens, while financial due diligence was completed by Dow Schofield Watts.

North West accountants CLB Coopers were corporate finance and tax advisers to MBO team, which was also advised by law firm Pannone.
 
Clearwater Corporate Finance and law firm Cobbetts advised vendor Paul Hutchins.