Cast Iron Future For Foundry MBO
The management buyout of a highly successful West Yorkshire foundry company promises to further accelerate growth.
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Managing director Michael Earnshaw led the purchase of WB White Foundry Ltd in Brighouse from founders Bob Pearson and David James, for an undisclosed seven-figure sum backed by The Royal Bank of Scotland (RBS).
He is joined by operations director Richard Taylor, commercial director Paul Owens and finance director Peter Fox in the deal that was structured by BTG McInnes Corporate Finance and sees 100 percent of the equity sold to the new management team.
Mr Earnshaw said: “We have big plans for WB White and as a team we have been given the opportunity to commit to its future. We have a fantastic staff of skilled workers, and our reputation for innovation, value and quality is a great platform from which to grow the business.”
The company that employs 40 staff was established in 1991 in the former Dominion Foundry, Brighouse, by 50 percent shareholder Bob Pearson. Fellow shareholder David James joined in 1992, and has also sold his 50 percent stake in the company.
Specialising in high quality metal castings WB White supplies the engineering, automotive, construction, retail and print sectors. The firm’s ASF division, launched in the Nineties, produces street furniture including bollards, railings, benches and tree grills.
Andrew Walls of BTG McInnes commented: “This is a really solid business with an experienced management team, consistent growth and a diverse and growing customer base. The improved profitability predicted by the new owners should be achievable, through a combination of new product lines and closer trading operations between the two divisions.”
Peter Smith from RBS provided senior debt facilities and John Moors of RBS Invoice Finance provided working capital facilities in a funding package designed to support further growth of the company.
Peter Smith, associate director, Structured Debt Solutions at RBS said: “It is great to be involved with a traditional local business which has enjoyed sustained profitability despite the threat of competition from overseas.
“Since the threat of such competition has materialised the company has continued to grow which is testament to the quality and efficiency of the business and its products. We look forward to a long and successful relationship supporting the business in a new era,” he added.
Lester Wilson of Watson Burton provided legal advice to the management team.
