Press Releases

23 January 2006

ENTERPRISE FINANCE EUROPE BACKS TWO MANAGEMENT BUY-INS
FOLLOWED IN QUICK SUCCESSION BY ANOTHER MANAGEMENT BUY-IN

L-R Malcolm Staff (Halifax Fan), Ian Bath (EFE director) and Ian McEvoy (managing director of Halifax Fan).

A seasoned businessman has become a management buy-in candidate in two businesses backed by asset-based lender Enterprise Finance Europe (EFE). Ian McEvoy acquired two businesses with EFE’s backing – Halifax-based Halifax Fan Limited and Littlehampton-based Lorlin Electronics Limited from Halifax Industrial Group.

Within weeks of acquiring Lorlin, Ian McEvoy has enabled the management team to undertake a further management buy-in. A manufacturer of electronic switches, employing 100 staff, Lorlin is based in three adjoining units on Harwood Road, Littlehampton, BN17.

Lorlin is involved in the manufacture and supply of rotary, push button dimmer and lock switches and has been trading for over 40 years. With a broad customer base, approximately 80 per cent of production is exported, mainly to Europe.

Meanwhile Ian McEvoy is now concentrating his skills on Halifax Fan Limited, a business which designs and manufactures industrial fans for a variety of applications.

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Established over 40 years ago, Halifax Fan is a key supplier of industrial fans worldwide and has an excellent reputation in its marketplace for high quality, robust products suited to aggressive atmospheres.

Manufacturing fans ranging in value from £200 to £250,000 each, products at the upper end of its price range can take many weeks to manufacture. The company is based on Brookfort Business Park in Brighouse and employs 54 staff.

Both Halifax Fans and Lorlin are two of four manufacturing businesses acquired from Halifax Industrial Group, a venture capital backed group formed between 1996 and 1999 by the then fund managers Gartmore. Control passed to Bridgepoint and Elderstreet, who after five years of management were looking to pursue an exit.

Ian McEvoy, director of Halifax Fan said that he was delighted to have become an MBI candidate for the two businesses and to effect an MBI at Lorlin. “These are two good, solid businesses. I am looking forward to building on the impressive brand and reputation of Halifax Fan. A key market for export sales will be China, which has great potential, and we’ll also be focusing on Research & Development which will be an integral part of our continued success.

“The Lorlin MBI team which is being headed by John Gray has a strong management and product range and I wish them every success going forward.”

Enterprise Finance Europe has provided funding for the MBIs of Halifax Fans and Lorlin and the subsequent MBI of Lorlin and are also providing ongoing working capital.

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Ian Bath, director with Enterprise Finance Europe added; “This has been an interesting deal to work on, initially funding two MBIs, followed by another MBI with the Lorlin business being sold onto John Gray in back to back deals. EFE is continuing to fund Lorlin as the business moves forward and these businesses are ideally placed to build on the platform that our funding provides.”

Enterprise Finance Europe were introduced to the transactions by Richard Booty of Milton Keynes-based Five Corporate Finance.

DLA Piper Rudnick Gray Cary in Birmingham (Stephen Bottley) provided legal advice to Enterprise Finance Europe. Due diligence for the MBI team was undertaken by Mazars in Milton Keynes (Stephen Brown). Lawyers to the MBI team were EMW Law in Milton Keynes (Paul Bevington).

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