Press Releases

06 July 2005

LEEDS MANUFACTURING GROUP BOUGHT BY MANAGEMENT

Winder Electrical and Newton Derby Limited, two Leeds-based electrical manufacturing companies have been bought by their management teams for a six figure sum.

Winder Electrical and Newton Derby have both been established for more than 100 years in the transformer and generator markets, and are individually profitable businesses with solid order books and strong trading records.

The parent company MP Industries has been suffering severe cash flow problems, which led to its administration. The management have stepped in and acquired both Winder Electrical and Newton Derby who had a combined turnover of £8 million last year. The businesses will continue without disruption to their operations within a newly incorporated parent company.

The management team, led by chairman, Richard Asquith, general manager Paul Matthews and operations director, Andy Pinkney will be on the board of the new business. Emma Robinson of McInnesCorporateFinance structured the deal that sees 100 per cent of the assets and goodwill of Winder Electrical and Newton Derby transferred to the new parent company. The transaction was backed by Enterprise Finance Europe and YFM Ventures.

Paul Goodchild of Enterprise Finance Europe in Leeds said: “The provision of niche products, backed by experience, reputation, expertise and high service levels will ensure a robust future for these businesses. Enterprise Finance Europe is delighted to be involved in the deal and is looking forward to supporting this very capable management team to achieve their plans for growth and profitability.”

Chairman, Richard Asquith said he is delighted with the deal and stated: “Everyone has worked hard to secure the future for two of Yorkshire’s most established manufacturing companies. The businesses, although hampered by the problems of the parent company, have excellent reputations within their fields: the companies going forward are now able to realise their potential. The management team is committed to the growth of these specialist businesses within the next five years, and can see a bright future for the skilled and dedicated team at Leeds.”

The company is a significant provider of transformer and generating equipment to the power and distribution industries in the UK and Europe. The customer base includes water and power utilities and the company has a major ongoing contract with the Ministry of Defence.

The swift deal will see no interruption of production at the two companies’ Belgrave Works in Pudsey, and there are no planned job losses from the 75 strong workforce.

Mark Hunter of YFM Venture Finance added; “This is a great deal which secures the future of two renowned companies, both pioneers in the production of high quality engineered products. The management has acted swiftly to make sure the two businesses are able to secure existing orders and give the continuity that is crucial to an effective business. Everyone involved can now concentrate on the business moving forward from very stable foundations.”