200-year-old Telford manufacturer snapped up
A 200-year-old manufacturer in Telford has been bought out in the first deal to be completed in the UK by a Canadian investment vehicle.
Private equity business Ardenton Capital has made Corbetts the Galvanizers in Telford its first UK investment following the opening of its operation in Manchesrer.
The value of the deal has not been revealed, but in 2015 Corbetts, which is based at the New Alexandra Works at Halesfield, agreed a £10.5 million deal which would have seen it bought by a subsidiary of Hill & Smith Holdings, before plans for an inquiry by the Competition and Markets Authority led to the takeover's collapse.
The business, which was founded in 1809, will continue to be led by its long-standing managing director Tim Ward and financial director Sophie Boothroyd, who has worked for the business since she was 20.
Both have invested in the business alongside Ardenton.
Corbetts galvanizes for UK and international manufacturing businesses with a strong market position. The management team’s strategy will be to continue to "deliver excellent customer service and a high quality product", while looking to grow capacity in operation.
Ardenton, which was founded in 2010 and plans to invest £100 million globally this year and £500 million in the next five years, says it invests with a long-term focus with no intention to offload the businesses it acquires.
The UK team is headed by directors Michael Bradbury and Iain Marlow.
Mr Bradbury said: “Corbetts is a great business with an impressive management team.
"We set out with a sector-neutral approach and a focus on robust and growing businesses supplying products or services that will be as relevant in 20 years’ time as they are today. Corbetts ticked every box for us.”
Mr Ward added: “We look forward to the next chapter working alongside the team at Ardenton.
"Our aim will be to consolidate our position in the UK market and continue to deliver excellence to our client base.”
Most recent accounts – for the year to March 31 2016 – show Corbetts achieved turnover of £10.3 million last year, with operating profit of 1.69 million. It employed an average of 127 people during that period.
Joe Rai, who represented the sellers in the deal, said: “The vendors are delighted that the business is passing to its management team and Ardenton who, they are confident will uphold the values and tradition of excellence for which the company is synonymous.
"We would like to thank our advisors KBS and Ardenton for facilitating an extremely smooth transaction that delivers an exceptional result for all parties.”
Galvanization involves applying a coat of zinc added to steel or iron to stop them rusting.
Senior debt and working capital facilities for the deal were provided by the Midlands Corporate and Structured Finance team of Yorkshire Bank led by Ian Howey and Ian Mansell.
Ardenton has plans to begin fund raising in the UK later in 2017.
