Servosteel (Holdings) has acquired Dudley-based Steelstrip Services after securing a funding package from HSBC’s Black Country and Shropshire Commercial Centre.
Steelstrip Services was formerly known as Essar Steel Processing & Distribution UK.
Phillip Guest and Mark Anderson, who were CEO and CFO of the former Essar Group owned company, completed a management buy-out of the business, which will now trade as Servosteel.
As the UK’s largest supplier of toll processing services to the strip mill products market, Mr Guest and Mr Anderson believe the return to independent ownership will be welcomed by its customers and suppliers.
The focus of the business will return to the servicing of its customers’ hire-work, whilst at the same time continuing to offer steel stock holding sales to complimentary sectors of the market.
Servosteel can trace its history back more than 30 years and has an established customer base serving many sectors of the UK steel market.
The company employs 75 people at its Pensnett Road site.
HSBC provided a multi-million pound funding package to support the acquisition, in a deal led on behalf of the bank by senior international commercial manager Gary Riley.
Executive director, Mr Anderson said: “We are delighted to have been able to bring the company back into private ownership where we believe it can continue to prosper.
“Despite the fact that it has not been used for a number of years, the Servosteel name still resonates within the UK steel market and we intend to build on its excellent reputation.”
HSBC Black Country and Shropshire area commercial director Kevin Skym added: “We are pleased to have supported this transaction.
“Phill and Mark are vastly experienced in this sector and enjoy excellent reputations - we are confident that they will be able to build on Servosteel’s solid foundations and take the business from strength-to-strength.”