MBO sees construction firm leave Wolseley
CONSTRUCTION supplies distributor Encon has conducted a management buyout from its parent company Wolseley Group.
Managing director Stuart Moore led the MBO from the renowned building supplies group which has several divisions headquartered in Leamington Spa.
The undisclosed deal secures the future of Encon’s 500 workers based in Wetherby, West Yorkshire.
Encon has a turnover of £194m and operates more than 20 sites across the country including in Birmingham and Nottingham.
The company was launched in 1981 and distributes insulation and fire protection products, dry lining, suspended ceilings and partitioning to the construction industry.
The deal was part funded with a £35m receivables finance line from Lloyds TSB Commercial Finance.
Lloyds TSB Commercial Finance and Lloyds Bank Corporate Markets were advised by Wragge & Co and Stuart Moore by Irwin Mitchell.
Mr Moore said: “As the new owner of Encon, I believe we have an excellent opportunity to drive the business forward and I truly believe we have an exciting journey ahead of us.”
Wayne Mills, business development director in Lloyds TSB Commercial Finance’s major corporates division, said: “As the property market gradually improves and increasing environmental legislation means older buildings are refurbished to meet new energy efficiency standards, the insulation market is expected to expand.
“Encon is well placed to capitalise on these market dynamics, with its broad geographic coverage and established reputation in its chosen markets.
“Asset based finance is increasingly being used as part of the M&A and private equity funding mix, as it strongly complements other types of debt in deal structures.”
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