Merger creates £50m-turnover land group
The management buyout and merger of two related businesses has created a £50m-turnover group that is well-placed to unlock the value of environmentally-challenging sites.
The deal brings together DSM Demolition and St Francis Group, and has been backed by investor Metric Capital Partners (MCP).
The combined group believes it has “a clear competitive edge in the UK market with its unique, combined expertise” – in technical remediation and planning expertise combined with an acquisition vehicle to purchase environmentally challenging sites. This combination enables the group to unlock the value of purchased land assets.
MCP partners David Scheurl and Ilkka Rantanen will join the board. In a statement, they said: “The combination of DSM’s technical capabilities and the planning expertise of SFG will allow the Group to approach challenging opportunities with a unique perspective.
“These elements provide a solid base for the Group’s growth strategy, and we are supportive of the Group’s management team – led by CEO Rob Braid and CFO Brian Baker – to drive the business forward.”
St Francis Group, based in Henley-in-Arden, was founded in 1973 with DSM, which is headquartered in Heartlands, established in 1988.
Both have grown to be significantly profitable. In 2015, the businesses’ latest published accounts, St Francis Group generated pre-tax profits of £8.8m on sales of £26.16m while DSM Group earned £9.29m pre-tax profits on £25.0m revenues.
Group chief executive Rob Braid added: “We have built a strong relationship with Metric through the course of the transaction and have identified large areas where our partnership can create significant growth opportunities across all of the combined group’s activities.”
