Jennings expands across the Pennines
BUILDING materials and services group Northern Bear is to expand its Yorkshire-based Jennings Roofing business into the North West.
The move, which follows Northern Bear’s acquisition of Jennings a year ago in a deal worth up to £5.1m, sees the opening of Jennings Roofing Manchester, a sister roofing business to the original business based in Leeds.
The new operation will replace the firm’s satellite office established last year to test the North West regional market. Based on Pilsworth Industrial Estate in Bury, the new business already employs 26 staff and expects to grow to 35 in its first year, as well as using local subcontractors.
This brings the number of operating businesses within Chester-le-Street, County Durham-based Northern Bear group to 13.
Following the acquisition of Jennings, which was funded by Yorkshire Bank, Graham Jennings, the former managing director, became an operations director for AIM-listed £50m turnover Northern Bear.
He said today: “We are delighted to be opening our latest business in Manchester. Eric Holmes has been appointed as managing director of Jennings Roofing Manchester and Martin Briggs at Jennings Roofing Leeds, both of whom are reporting directly to me.
“It is our intention to search for similar opportunities for other Northern Bear businesses that can be built around existing customer relations within a geographic region. Organic growth is particularly important for Northern Bear in the current economic climate,” he added.
Leeds-based Jennings, which has turnover of £10m and specialises in commercial and residential work, was founded in 1960 and employs 60 people.
Steve Roberts of BTG McInnes Corporate Finance, who are key advisers to Northern Bear on their growth and acquisition strategy, said: “Northern bear has gone a very long way since flotation just two years ago, and this real foothold in the North West market illustrates the firm’s serious intent to become a significant player in this lucrative region.”
“Although the firm is still seeking acquisition opportunities, and has access to a good war chest of funding, it is a smart move to be getting as much value as possible from growing the existing successful businesses into new regional markets,” he added.
Jennings Roofing has worked on high profile roofing projects including Sheffield Town Hall and the headquarters of Morrisons in Bradford. The firm has recently completed a major contract on behalf of the Ministry of Defence at the Army’s largest base, Catterick Garrison and are currently undertaking local housing association roofing projects in Preston and Bury.
Led by executive chairman Jon Pither, Northern Bear has expanded by purchasing mature, profitable owner-managed companies in the building services sector with strong management teams that are willing to remain in their positions.
Like many of the firms in the Northern Bear group, Jennings has increased its public sector revenues through work with local authorities via the Decent Homes programme, which aims to bring all socially-owned houses up to agreed Government standards by 2010.
