Lincolnshire-headquartered engineering firm, Blackrow, has undergone a management buy-out (MBO).
Established over 40 years ago, the Grimsby-based firm provides specialist fabrication services to a blue-chip customer base across the world, with the 300 strong workforce delivering solutions including conveyors, gantry, mezzanine and platform manufacture, control and automations systems, structural and pipework fabrication and installations.
The MBO sees Managing Director, Tony Booker, together with Gary Pexman (sales director), Nick Rands (operations director), Luke O’Brien (structural/piping director) and Callum Day (electrical director), join the board and become majority shareholders.
Blackrow’s current directors and shareholders – Neil Ellis (finance director), Chris Marfleet, Darren Broughton and Glenn Richie – will remain on the board and retain an investment in Blackrow.
ABN AMRO provided new facilities to fund the transaction. 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.”
Neil Ellis, finance director, said: “The current shareholders of Blackrow have had succession plans in place for some time and its 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.”
Tony 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’s facilities, people and capabilities. The MBO team are delighted to be given the opportunity to acquire Blackrow and to continue to build and grow this market leading, regional business.”
Blackrow and the shareholders were advised by corporate finance advisers, Dow Schofield Watts (Roger Esler, Paul Herriott, Jonathan Wilkinson, Mike Barker), legal advisers, Andrew Jackson Solicitors (Andrew Funnell, Jon Croft, Adrian West) and tax advisers, Tax Advisory Partnership (Russ Cahill). ABN AMRO was advised by Shoosmiths. The MBO team was advised by Wilkin Chapman (Adam Ottley).
Roger Esler, corporate finance partner at Dow Schofield Watts, said: “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.”
Andrew Funnell, head of corporate at Andrew Jackson Solicitors, added: “Blackrow has been through a number of buy-outs in its 40 year history and having been adviser to the company for over 20 years, it is great to see it continue its journey as a management owned business, with this MBO being the culmination of careful succession planning.”
