MBO at engineering business builds foundations for the future

A management buyout has been completed at Sheffield-based CTW Hardfacing.

The company, which was established in 1972, provides long-term wear resistant solutions to a range of industries, including those in the power generation, steel production, oil and gas and food processing sectors.

In a linked transaction, CTW Hardfacing also acquired the trade and assets of a larger supplier, which will further bolster the range of services it offers.

The deal was led by Jack Ware and Peter Wilmer of the Hawsons Corporate Finance team.

BRM Solicitors, led by Rory Conwill, provided legal advice. NatWest and Royal Bank of Scotland Invoice Finance supported the transaction with a funding package that included a term loan, a commercial mortgage and an invoice discounting facility. NatWest was advised by Clarion.

This is the second MBO Hawsons Corporate Finance has completed for CTW Hardfacing.

The first was in 2018 where Mark Hill and Adrian Carr bought out former owner Ken Cooke, and this transaction was also led by Jack Ware and Peter Wilmer. The purpose of the current MBO was for Adrian Carr to buyout his business partner Mark Hill to become the sole shareholder of the group.

Hill said: “ I started my career here at 16 years old and have now served CTW for over 47 years in various manual and managerial roles.

“Six years ago the company founder Ken Cooke passed Adrian and I a great opportunity to take CTW on to its next chapter and during this time Adrian and I are proud to have achieved good growth through such unprecedented trading conditions such as Covid-19, Brexit and the supply chain disruption.

“I hope Adrian and the wider team will continue to serve our clients well and help CTW move forward successfully for many years to come.

“My thanks go to Jack Ware at Hawsons, Rory Conwill at BRM Law and Clarions (acting for NatWest) who have all worked very well together to ensure this transaction was completed on time.”

Carr said: “Firstly I would like to personally thank Mark, it has been an absolute pleasure working side by side with him over the last seven years, we have gone through ups and downs within the business but we have always come out at the end smiling.

“We have pushed our limits to the highest standards to help set the foundations for CTW for many years ahead. I wish Mark a very happy retirement.

“Also, I want to thank Rory Conwill at BRM, Jack Ware from Hawsons & NatWest for completing the transaction on time.”

Hawsons Corporate finance director, Ware, said: “It has been an absolute pleasure to work with Adrian and Mark again following the MBO in 2018.

“CTW Hardfacing has gone from strength-to-strength since the MBO in 2018 increasing its turnover and profitability driven by the hard work of Adrian and Mark.

“I have every confidence CTW Hardfacing will continue its success following this MBO. It has been a pleasure to work with all parties involved.”

Conwill, corporate director at BRM, added: “My colleagues and I are very pleased to have supported Adrian and Mark on this transaction.

“CTW Hardfacing is a high-quality, Sheffield-based business, and I wish Adrian and the wider CTW Hardfacing team every success for the future.”