MMS snaps up rival after securing finance package
HSBC has supported Cradley Heath-based corporate workwear manufacturer and supplier Main Man Supplies’ acquisition of Davern Workwear through a £2.7m finance package.
The package includes acquisition funding, working capital facilities and invoice financing.
Cambridgeshire-based Davern manufactures, imports and supplies workwear for a range of clients in the aviation, construction, motor and retail sectors, amongst others. The deal safeguards 40 jobs at the firm.
The acquisition, for an undisclosed sum, will enable MMS to diversify its client base, expand its manufacturing capabilities, broaden its geographical coverage and distribute its ‘Warrior’ range of protective clothing through Davern’s network.
Davern’s Cambridgeshire premises will also provide a base to supply MMS’s clients based in the south of England.
MMS was founded in 1989 and employs 45 people at its Cradley-headquarters and a total of 94 people across its seven branches, including Stoke and Telford. It has a turnover of more than £17m and the deal will expand the size of the business, by turnover, by 35%.
The company sources product predominantly from China and sells mainly to the UK market, with a small proportion of its business coming from Europe, Australia, New Zealand and Canada.
The deal was supported by HSBC’s Birmingham commercial centre, with senior international commercial manager Adrian L’Enfant leading the relationship on behalf of the bank. MMS has been an HSBC client for 23 years and the acquisition sees Davern switch its banking to HSBC.
Mark Brooker, managing director of MMS, said: “Davern is a fantastic brand in this market and we aim to leverage that brand to improve sales and sell our own-brand products, such as Warrior. There is a clear synergy between the two companies and we are confident this deal will prove beneficial to our business.”
Roy Harris, HSBC regional commercial director for the Midlands, added: “MMS has been an HSBC customer since 1989 and we are pleased to be able to support them as they expand the business. Strategically, this acquisition is an excellent fit for MMS and builds on the company’s current proposition.”
