A West Midlands engineering company which has developed energy saving liners for users of furnaces, kilns and ovens has been sold to the company’s management.
Fuel Conservation Services Limited (FCS) of Cannock was established in 1983 and was previously owned by Conservatherm Limited which was headed up by Peter Havelock and employs 15 staff.
The management buy out – for an undisclosed sum - was led by managing director Mike Myatt, who has been with the business since 1990.
The buy out was brokered by Alan Gardner of the Wolverhampton office of Haines Watts Corporate Finance who initially advised the management team on the strategic restructuring of the business in late 2008 and early 2009 following a severe decline due to the recession.
External finance for the transaction was provided by Venture Finance, who also provided further funding to support the growth and development of the business through the Enterprise Finance Guarantee scheme.
Mr Myatt said: “We are well placed to continue to meet the needs of the UK market whilst export markets account for nearly 15 per cent of our output, involving installation work throughout Europe and the Middle East. We also distribute our specialist lining products through European and Turkish agents.”
Mr Gardner said he was impressed with the management’s approach and commitment.
“This is a classic example of a UK company that is strong on innovation and product development and has become recognised as a UK market-leader. It has faced tough times in the recession but the prospects for growth are significant and it is leading the way with its innovative engineering solutions meeting the needs of companies worldwide that are looking for reductions in their energy consumption.”
Guy Walsh, business development manager at Venture Finance, said the company had prepared well for its future growth.
Legal work on the complex restructuring and MBO was led by David Hughes of fbc Manby Bowdler of Wolverhampton.