Specialism
IndustrialsThe Business:
Direct Trade was established in 1998 by co-founder and majority shareholder Steve Green. Under Steve Green’s stewardship the company has grown to become one of the UK’s largest manufacturers and trade only suppliers of PVCu windows, doors, conservatories, composite doors and aluminium bi-folding doors.
The Company is based in Doncaster and operates out of a 100,000 sq.ft. facility within which it manufactures PVCu windows and doors composite doors, conservatory roofs and bi-folding doors. Current manufacturing capacity is c. 2,200 window frames and 100 aluminium bi-fold doors per week with total annual sales in excess of £32m.
The Transaction:
In this vendor-initiated management buyout, the management team of Danny Cotton (Managing Director), Mark Powell (Sales Director) and Jim Buckley (Production Director) acquired the business from Steve Green, with funding provided by HSBC Bank plc.
Martin Poole (Partner) and Tom Eastwood (Associate Director) (Azets Corporate Finance), acted as lead advisers on the transaction, with transactional tax advice from Ray Abercromby (Azets). The legal advisers for the vendor were led by Richard Griffiths of Higgs & Sons LLP, with legal advice for the management team provided by Richard Underwood and Angela Faulkner of Legal Clarity. Funding for the transaction was provided by HSBC (Andy Benson and Sam Owen).
Other advisers that worked on the transaction were FRP Advisory (financial due diligence) and HCR (banking legals).
How we have helped:
Steve Green was introduced to Martin Poole (Azets Corporate Finance) by Richard Griffiths (Higgs & Sons LLP). Steve was looking for advice on a potential MBO as part of his exit plans, following an initial meeting with both Steve and the management team, Azets Corporate Finance were appointed as lead advisers.
Martin Poole (Partner) and Tom Eastwood (Associate Director) led the whole process. From the initial valuation discussions, compilation of the funding model, through to the introduction of potential funding partners and legal advice, with guidance and valuable input throughout the financial due diligence and legal processes. Azets provided advice to both Steve Green and the management team, which enabled all parties to have clarity on each step of the transaction and allowed the management team to concentrate on running the business.
What the client said about us:
Steve Green commented, “It has been an incredible journey building Direct Trade up to the business it is today. I am delighted that we have been able to provide Danny, Mark and Jim with the same opportunity that I have had, and it will be rewarding to see them continue growing the Direct Trade business in the forthcoming years.
All full credit to Martin and Tom from Azets. They have taken both me and the management team through the whole process from start to finish. Their pragmatic and straight forward approach has enabled us to have full visibility and a clear understanding on what has, at times, been a complicated process. With their guidance we have been able to put together a deal that works for all parties involved. I would also like to take the opportunity to thank Richard Griffiths at Higgs & and Richard Underwood at Legal Clarity for their legal advice and input into the banking agreements.
I am looking forward to seeing the business thrive under the new team, between them they have many years of experience and I am confident that the business is in save hands.”
Danny Colton from the management team said, “For my part, the knowledge and support shown to us by Tom, Martin and the team from the very start of our discussions, through to completion and beyond has been tremendous”
Azets comment:
Martin Poole (Partner) commented, “Rarely do we get the opportunity to work with both a vendor and a management team that are, not only thoroughly professional, but also pragmatic in their approach to the overall process.
It has been a pleasure to work with all parties involved in this transaction and to be able to draw on our network of advisers and funders in the West Midlands. Following a competitive funding process, Andy Benson and Sam Owen at HSBC put forward a funding packaging that met the expectations of all parties and provided the best overall funding solution for the transaction.
Having worked with both legal advisers on previous transactions, this enabled a smooth legal process and ultimately a successful conclusion for all involved. With input from Ray Abercromby (Tax Partner), a suitable structure was developed which will allow Steve to fulfil his ambitions of a family legacy combined with retirement in warmer climates!”
Tom Eastwood (Associated Director) said, “Steve has built a successful business, which has seen excellent growth over recent years. This transaction will allow the management team to take on the running of the business and for them to continue growing the company in years to come.
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