MBO completed at West Yorkshire manufacturer


News - 22 August 2019

A Management Buyout (MBO) has been completed at a historic West Yorkshire manufacturer, supported by a number of advisers from the region.

Siddall and Hilton Products Ltd, founded in 1898, produces welded steel mesh high-security, general fencing and industrial mesh panels. It has a 53-strong team at its Brighouse headquarters, with its products exported to Ireland and throughout Europe. 

The deal covers the acquisition of holding and property companies Mantis Holdings Ltd and Mantis Investments Ltd for an undisclosed sum, and has resulted in the formation of a new holding company, Blackfish Enterprises Ltd.

In 2015, Neil Stewardson led an MBO with Ian Thurley enabling the exit of the Siddall family, with the new management subsequently driving the business's geographic expansion and product diversification.

Stewardson's shareholding has now been purchased by a consortium of existing management team members, led by Thurley, who takes on the role of chief executive, together with co-investors finance director Morgan Beresford-Lambert, purchasing and quality director Andrew Lingard, IT and communications director Simon Butterworth, sales director Neil Sutcliffe, ERP manager Pam Jackson.

The MBO was funded by ABN AMRO Commercial Finance with support from the company's mortgage provider, Barclays, and supplemented by significant equity investment from the shareholders.

A team of Yorkshire advisers supported the transaction including Hitesh Tailor of Clarion in Leeds and Richard Wilson of RSM who advised the management team; and Lester Wilson of DWF in Leeds who advised Neil Stewardson.

Ian Thurley said:
"The MBO represents the next stage in the evolution of Siddall and Hilton Products Limited. Having placed the business on a sound footing for the future, our focus will be on improving long-term sustainability through greater employee engagement and involvement, ensuring that we create a 'one team' ethos which builds on the loyalty, dedication and commitment already amply demonstrated by our staff.

"This latest investment further strengthens the business, enabling us to work towards our ambition of being the most efficient, profitable and environmentally friendly wire mesh producer in Europe as well as being an outstanding local employer."

Hitesh Tailor, of Clarion, added:
"Siddall and Hilton is a long-established business with a clear direction – with such an experienced and ambitious team at the helm, they have a bright future ahead."

Neil Stewardson will now focus on other interests and investments, including a partial MBO at HPC Laser Ltd that completed in 2017.