Manufacturing subsidiary targets growth after £18m MBO
AN £18m MBO and stock market exit by a leading engineering group is paving the way for its West Midlands subsidiary to begin product expansion.
In a deal funded by HSBC’s corporate banking team in Birmingham, SWP Group has been acquired by Friars, a newly-created management-backed company backed by a number of former SWP directors.
SWP has also de-listed from the Alternative Investment Market (AIM) and it is now looking for new growth opportunities as a standalone business.
The former SWP businesses designs, manufactures and installs a range of industrial engineered products and systems, serving international markets in the oil & gas, petrochemical, construction and water utilities sectors.
The group established its reputation on brands such as ULVA Insulation Systems and Fullflow Group.
ULVA supplies non-metallic cladding to prevent corrosion under insulation of pipework while Fullflow supplies a syphonic system that helps with the drainage of water from large roofs by sucking or syphoning water into a drain at high velocity.
One of the first operations to benefit will be Telford-based ULVA, which is planning to launch a new product line in January. This will be manufactured out of its new Wednesbury manufacturing plant.
In a separate deal, HSBC has provided an overdraft loan which will provide the group with the working capital needed to launch its new product line and expand its international presence.
The funding was arranged for Friars by HSBC relationship director, Richard Newman.
Former SWP directors Alan Walker, Colin Stott, David Pett and Martin Bell have moved across to the Friars business.
Mr Stott, said that as a private company, Friars would be better able to manage the challenges associated with transacting a small number of large projects.
Markus Keller, HSBC’s area director for corporate banking in Birmingham, said the bank’s international footprint would assist the new company with its expansion plans.
