An £11.1 million pound deal led by Streets’ Corporate Finance Partner Neil Gray and Streets Tax Partner Krista Fox, who acted on behalf of the management, secured the management buy-out of E. E. Smith Contracts Limited and Clarendon Fabrications Limited.
Neil Gray commented: “We were delighted to be instructed to act on behalf of the management in this transaction and to help ensure an expedient and successful deal. The sale of a business to a management team, especially those with a vision and appetite for the future, is often a great way for owners to exit the business or for serial entrepreneurs to move on to their next venture. The deal was a good illustration of this.”
Krista Fox added: “We are delighted to have assisted this transaction. Rodney and Nigel Richardson developed a hugely successful business and it is great to see the handover to a highly capable management team who will take the company through the next stage of its development.”
E. E. Smith Contracts was founded in 1897, and is one of the UK’s leading specialist interior fit-out contractors. The company fits out some of the world’s most prestigious hotels, commercial interiors and private residences. It engineers bespoke, tailor-made interior solutions to the highest quality in its state-of-the-art manufacturing facility located in Leicester, and project manages the fit-outs and installations. E. E. Smith Contracts’ impressive client list includes Crowne Plaza Hilton, Intercontinental Hotels Group, Grosvenor House Hotel and The Savoy.
Clarendon Fabrications manufactures and installs bespoke, unique, solid surface fabrications to a variety of sectors including hospitality, retail, healthcare and leisure. The company uses the most modern machinery and manufacturing processes to deliver high quality, solid surface fabrications, ranging from complex fabrications to extreme thermoforming.
In the role as a lead adviser Neil, along with Streets Tax Partner Krista, advised the client on the deal structure, tax implications and helped secure the funding for the buy-out from Maven Capital Partners and Lloyds Bank Plc. The Streets’ team worked closely with the legal teams and financiers, including Gateley plc, Freeths, Howes Percival and Lloyds Bank plc involved in the transaction.