Grimsby-based multi-disciplinary specialist engineering group Blackrow has undergone a management buy-out.
Established more than 40 years ago, the employer of more than 300 people provides fabrication and installation services to blue chip customers worldwide.
The deal sees managing director Tony Booker, together with sales director Gary Pexman, operations director Nick Rands, structural and piping director Luke O’Brien and electrical director Callum Day, join the board and become majority shareholders. Blackrow’s current directors and shareholders, Neil Ellis, Chris Marfleet, Darren Broughton and Glenn Richie, will remain on the board and retain an investment in the South Humberside Industrial Estate business.
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The £32 million turnover business enjoyed a 52 per cent increase in revenues in the last financial year, with an operating profit of £3.5 million.
Mr Booker, managing director, said: “Neil, Chris, Darren and Glenn have led Blackrow through periods of both opportunity and challenge and the strength of the business today is testament to their determination to invest continuously in the business’ facilities, people and capabilities.
"The MBO team are delighted to have been given the opportunity to acquire Blackrow and to continue to build and grow this market-leading, regional business.”
The undisclosed deal was funded by ABN Amro Commercial Finance UK.
Neil Ellis, finance director, said: “The current shareholders of Blackrow have had succession plans in place for some time and it's very pleasing to have seen the MBO team take shape over the last few years and to transition into leadership roles, delivering excellent service to our customers and driving fantastic growth for the business. We believe that Blackrow is in very good hands for this next phase of its growth.”
The group - which has a historical specialism in the food and beverage sector but also serves the chemicals, construction, engineering and petrochemical sectors - has experienced significant growth in recent years.
This is expected to continue based on a high level of market activity and a strong pipeline of business. It prides itself on being at the forefront of engineering solutions including conveyor systems, gantry, mezzanine and platform manufacture, control and automation systems, structural and pipework fabrication, and installation.
The customer base includes the likes of PepsiCo, KP Snacks and Knauf.
Blackrow and the shareholders were advised by corporate finance advisers at Dow Schofield Watts, legal advisers at Andrew Jackson Solicitors and tax advisers at Tax Advisory Partnership. ABN Amro was advised by Shoosmiths. The MBO team was advised by Adam Ottley of Wilkin Chapman.
James Elliott, director at ABN Amro, said: “Blackrow has a fantastic reputation in its markets and an impressive, loyal customer base. These factors, together with an excellent pipeline of projects over coming months and years led us to want to support the MBO and the future growth of the business.”
Roger Esler, corporate finance partner at Dow Schofield Watts, added: “It’s been a pleasure working with Blackrow over several years as the company navigated the challenges of the Covid pandemic to emerge as an even stronger and larger business today, with a fantastic reputation in its target markets and creating a robust platform for the MBO.”
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