The Grove Wharf and Neap House port complex at Gunness on the River Trent near Scunthorpe has been acquired in a management buy out for an undisclosed sum.

Managing Director Martin Rees and Finance Director Andrew Brown head up the new company, Wharton Grove Wharf Ltd, which has taken ownership of the massive complex.

J Wharton (Shipping) Limited, which remains in the ownership of the Wharton family, has taken a significant investment in Wharton Grove Wharf Limited and Mr Steven Wharton has taken a non executive seat on the board of the new company.

The 12 berth complex is the largest private inland port in the UK, and covers some 190 acres. The port handles a wide variety of bulk, timber and steel cargoes and has become the UK’s leading distribution hub for long steel products. The business has grown significantly over the years into a facility that can handle up to 3.5 million tonnes of cargo per annum.

McInnesCorporateFinance structured the deal that sees the business and port complex acquired from J Wharton (Shipping) Ltd, with backing from Yorkshire Bank led by Mike Selina and Russell Jowett, who were advised by Eversheds and Robson Rhodes. Other advisors included Mark Warburton of law firm Watson Burton who advised management on the transaction and Tony Robinson of Forrester Boyd and Stephen Savage of Grange Wintringham who advised the vendors.

Joseph Wharton established his business on the River Trent at Keadby in 1885 and his son Jack Wharton began developing Grove Wharf in 1959. Steven Wharton joined the business with his father in 1961 and has been instrumental in the success of the company since that time.

Between them Rees and Brown have combined service at Grove Wharf of 29 years and have played a major part in the recent success of the business. The strategic development to increase storage and distribution facilities has laid firm foundations for the future of the business.

Commenting on the deal, Martin Rees said; “This is a very strong business that Andrew and I have helped to build over recent years. To take ownership and maintain the facility’s independence is a great opportunity for us. We already have the largest market share of UK imports of long steel products and, with our continuing strategic investment into the infrastructure, we intend to maintain the tremendous growth we have achieved since the 1980’s. One of our best assets is the superb and very loyal workforce and backing this venture is very much backing them.”

The port’s niche in handling and distributing specialist steel and timber products is a key to its recent success. Its proximity to major routes including the M62 and M18, as well as continued investment, such as the £1.5m invested in new storage facilities in 2004 and state of the art cranes, has ensured its enviable growth record despite strong competition from locally operated ports.

Steve Roberts of McInnesCorporateFinance said; “This is a very established business that has managed to thrive through a hundred years of change in import and export trends, and its position as market leader is a testament to the abilities of Steve Wharton and the management team. The expansion of the distribution side of the business and the services they can offer customers with their facilities and expertise should provide the port with a very bright future. The continuity that this deal offers the business is very good news for the area and future employment.”

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