A Black Country steel stockholder has undergone a management buyout (MBO) advised in the Midlands.
Carrs Tool Steels has changed hands for a multi-million pounds sum in a deal masterminded by Andy Kay, corporate finance director at the Midlands office of national audit, tax and advisory firm Crowe Clark Whitehill, and David Neate, partner at Springboard Corporate Finance.
The Tipton-based firm supplies its customers, mostly machine tool makers, with high quality tool steel, employing 30 people.
Carrs, which can trace its history back to 1902, is a leading supplier of advanced technology tool steel and aluminium, providng a comprehensive range of materials and cutting and machining services to manufacturing businesses across the country.
The business has experienced strong growth in recent years following the resurgence of the UK manufacturing sector and investment in new processing facilities.
Originally acquired by the shareholders via a MBO in 1992, it 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.
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.”
Andrew Eastwood said: “Both Julie and I know the business well and were keen to grasp this opportunity.
“I want to pay tribute to the previous owners’ stewardship in creating such a solid and well invested company.
“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.”
Andy Kay said: “Carrs is well-placed for growth.
“This is a changing of the guard as happens at all firms. Andy and Julie are experienced executives who know the business inside out.
“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.”
David Neate, who led the transaction for Springboard, said: “Despite the difficult economic climate Carrs has flourished, innovating to provide value added service to its customers.
“This strategy has enabled the business to cut a niche in a traditional marketplace. The sale to management reflects just rewards for their input in delivering this strategy.”
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.