Risk management firm undergoes £2.7m MBO
A MIDLAND-based engineering risk management consultancy has undergone a £2.7m management buy-out backed by venture capitalist EV.
The deal sees EV take a minority stake in Health Safety and Engineering Consultants (HSEC), based in Ashby-de-la-Zouch.
Debt facilities were provided by The Co-operative Bank and included funding to support the company’s future growth.
HSEC provides health and safety and risk management advice to clients across the UK. Under its RHMA brand it provides forensic investigation and expert witness services dealing with personal injury, commercial liability and health and safety regulatory work to an increasing number of law and insurance firms.
The firm, which employs 22 people, was established in 1991 and has its roots in the engineering service of British Coal.
The MBO was led by the Director of Consultancy Services, Dom Barraclough, who becomes Managing Director. He has been joined by newly appointed Financial Director, Peter Brown, and new non-executive directors John Crabtree, previously senior partner with Wragge & Co and now chairman of Birmingham engineering firm Brandauer, and Patrick Kelly, formerly a senior partner with PA Consulting.
Bob Mitchell, who founded the firm, is staying on with the business, retaining a financial interest and continuing to provide expert witness services.
Mr Barraclough said: “We are delighted to have attracted EV as an equity investor to support us in taking the business forward. We have achieved an enormous amount in developing our people, services and client base over recent years and look forward to growing and strengthening the business further alongside EV.”
Simon Ward, who led the deal for EV alongside Paul Betts, said: “HSEC is a great business with some tremendous consultants providing the highest quality services to exceptional clients.
“This is a traditional MBO, building on 20 years of history and achievement. This deal demonstrates that despite the current funding environment, good management teams can still find support.”
Debt facilities were provided by Mark Turner of The Co-operative Bank’s Derby Corporate Banking Centre.
Mr Turner said: “We are delighted to be involved with this long standing Midlands-based business with a strong sector reputation. Further success beckons for the very capable management team and experienced staff.”
Financial advice to Dom Barraclough was provided by Ryan Wilkinson, of HWCA while Bob Mitchell was advised by John Bryant of Cooper Parry.
