YORKSHIRE advisers and funders have played key roles in the management buyout of Leengate Valves, with increased buyout activity forecast for the year ahead.
The wholesaler of industrial valves has been acquired by its management team from Linde AG, the German listed industrial gases and engineering group.
With an annual turnover approaching £7m, Leengate Valves supplies major re-sellers in the gas, water and industrial sectors.
Based in Derbyshire, the company holds one of the largest ranges of industrial valves in the UK and also provides its customers with specialist actuation and automation engineering services.
Managing director Steve Pickering said: “Having helped found Leengate Valves some 20 years ago, I am very proud that my team and I now have the opportunity to own the business we know so well. Having completed the buyout we are now all looking forward to continuing to work closely with our suppliers and customers and building on our success.”
Funding for the buyout was provided by Yorkshire-based YFM Equity Partners and HSBC.
BHP Corporate Finance, which has offices in Leeds and Sheffield, acted as lead adviser to the Leengate management team on the acquisition and fundraising.
Kevin Davies, assistant director, said: “What has been particularly encouraging to see is the appetite of both debt and equity funders to support this transaction – something which I believe bodes well for increased buyout activity in the SME market in the coming months.”
Legal advisers to the Leengate management team were Paul Trudgill and Sarah Riley of hlw Keeble Hawson.
YFM Equity Partners’ investment was led by Mary Broadhead, who said: “Leengate Valves is a highly respected and trusted company with an experienced management team. We look forward to using our experience in growing engineering and manufacturing businesses to help Steve and the team develop existing and new markets for its products.”
HSBC’s South Yorkshire commercial and invoice finance teams provided acquisition finance and working capital facilities. HSBC senior commercial manager, Chris Alsop, said: “We are seeing an increased appetite for this activity across South Yorkshire and forecast a strong year in 2014.”