Carrs Tool Steels MBO is Deal of the Month for May
THE transaction which saw a Black Country steel stockholder undergo a management buyout in a “multi-million pound” deal advised out of the region has been chosen as our Deal of the Month for May.
Carrs Tool Steels, based in Tipton, has been sold to the company’s management team led by managing director Andrew Eastwood and operations director Julie Shields, who have worked in the business for more than 20 years.
Carrs is a supplier of advanced technology tool steel and aluminium, providing a range of materials and cutting and machining services to manufacturing businesses across the country.
The firm, which employs 30 people, has seen strong growth in recent years following the resurgence of the UK manufacturing sector and investment in new processing facilities.
Bill Church, the outgoing chairman of Carrs, said: “We are delighted to have completed the sale of the business to Andrew and Julie.
“This represents a natural conclusion to a succession plan we instituted in 2009. The business under their management has continued to go from strength to strength and we are delighted to hand over the reins to them.”
Eastwood said: “Both Julie and I know the business well and were keen to grasp this opportunity.
“The demands placed on production tooling have risen dramatically in recent years with the introduction of new materials such as high strength, low alloy automotive steel and new, more demanding production processes.
“Coupled with a resurgence in the UK manufacturing sector we see a strong future for Carrs.”
The MBO involved a raft of local advisers.
It was was advised by Andy Kay, corporate finance director at the Midlands office of Crowe Clark Whitehill, together with David Neate, partner at Springboard Corporate Finance.
The transaction was financed by Barclays, with Mark Attwood, relationship director, acting.
Nick Taylor and Richard Griffiths, of Higgs & Sons, provided legal advice to the MBO team.
The shareholders of Carrs were advised by Harrison Clark Rickerbys, led by Alison Scott.
Kay said: “Carrs is well-placed for growth. The last three years have seen substantial growth in turnover and profits, and the outlook is good going forward as new markets and processes are introduced.
“This deal has been funded and advised locally and we were very pleased to be part of that.”
Revealing why this transaction was chosen as the Deal of the Month, TheBusinessDesk.com editor Andy Coyne said: “This deal ticks a lot of boxes. Whilst the deal flow has been steady, if unspectacular, MBOs have been few and far between.
“For businesses to flourish and for entrepreneurs to prosper in this region we need to see ambitious management teams taking companies on.
“This was a deal entirely advised and funded locally and once again shows how much dealmaking talent there is in this patch.
“And finally it shows that well-run manufacturing businesses from this region have a very bright future indeed.”
