The management team at Smethwick-based LA Metals has completed a management buyout of the business from the founding partners.
The buyout was led by managing director Joe Mullally and sales director Andy Woolliscroft, supported by a commercial finance package from NatWest Structured Finance in Birmingham.
LA Metals is an aluminium extrusion stockholder supplying to a wide spectrum of industry.
In addition to its standard stock range, the company offers fabrication and finishing services both in-house and through the use of sub-contractors as well as a bespoke design and supply facility.
Founded in 1988 LA Metals is now a specialist stockholder, servicing major private and SME clients. It employs 18 staff and has an average annual turnover of £3.5 million.
Mr Mullally said: “From a very solid base, LA Metals has flourished over the last few years and the timing was appropriate for an MBO to secure the company’s future, whilst allowing the founding partners to take advantage of their retirement plans.
“With the support from our current funders, NatWest, who have had a long association with LA Metals, we hope to be able to exploit opportunities throughout the region and grow the business in the niche areas we have created.”
Mr Woolliscroft added: “We will continue to work closely with our customers to support their needs as we have done so for many years now and believe we can offer a unique and tailored offering in a niche market.
“We are grateful to Jat Najran of DNA Corporate Finance and the team at Shakespeare Martineau for supporting us in this transaction and for the professional way they dealt with the challenges along the way.”
Mr Najran, partner at DNA Corporate Finance said: “Joe and Andy are a very capable and experienced management team in a business that has a number of unique attributes and now, with an appropriate capital structure following the MBO, have excellent support for the continued development of the business.”
Gary Davie, partner at Shakespeare Martineau, provided legal advice to the management team and said: “It’s been great to be involved in a deal like this for a leading local business in its field and we look forward to seeing them go from strength to strength from here.”
Nic Hanlon of NatWest Structured Finance, Birmingham said: “We are delighted to be able to support Joe and Andy with the next chapter for LA Metals, who have been a long and valued customer of the bank. We look forward to supporting their future growth plans.”
James Dyson from Gateley’s Birmingham office provided legal advice to NatWest and Amanda Samuels of Mazars provided financial due diligence.
The vendors were advised by Tim Jobson of Jobson solicitors.