Castle Square advise on Leveraged buy-in of specialist steel supplier


 



Sheffield based businessman Darren Bradley has acquired a controlling stake in Masteel UK Limited for an undisclosed sum, in a deal where the Buyer was advised by Yorkshire based Corporate Finance specialists, Castle Square Corporate Finance.

Masteel UK Limited specialises in the supply of high grade, high-quality specialty steels, supplied to a wide range of customers located across all seven continents. Masteel operates from Head Office facilities near Lichfield and fabrication and warehouse facilities in the Coleshill area of Birmingham as well as having an international sales office based in South Africa.

Since formation of the business in 2002 and latterly under the ownership of Managing Director Simon Ollerenshaw, Masteel has grown to become a leading strategic supply partner for steel mills across the UK, Eastern Europe, Africa and South America.

Masteel has strong relationships with a wide range of clients operating in multiple sectors including oil & gas, petrochemical, energy, construction, offshore, traditional engineering and defence.

Simon Ollerenshaw will continue in his current role as Masteel Director whilst working with Darren and the existing Leadership Team to drive future growth across the Masteel Group. Simon has retained an equity stake in the Masteel Group as part of the transaction.

Darren Bradley will join the existing Management Team, as CEO, bringing with him a wealth of experience in owning and managing businesses operating across the steel industry nationally and internationally.

Darren has almost 35 years in the steel and metals processing industries, operating at Board level for the last 25 years, in various commercial and operational roles.

Darren Bradley, said, “I am extremely excited to have been able to complete this acquisition and am looking forward to joining the highly experienced management team at Masteel. The future looks bright for the business as we look to build on the strong reputation the company already has in the marketplace. I would like to thank Simon Ollerenshaw for his involvement in this process and also a special thanks to my advisors Patrick Lynch at CSCF and Philip Jordan of Progeny Law & Tax who helped make the deal happen“.

Yorkshire based dealmakers Castle Square Corporate Finance ran a competitive funding process, seeking the acquisition and working capital finance.

Led by Director, Steve Armstrong, Shawbrook Bank emerged as the preferred funder and backed the deal with a significant acquisition and working capital finance package, comprising ABL facilities and senior debt.

Philip Jordan and Tobias Adkins from the Leeds office of Progeny Law & Tax provided legal services and advice to the Buyer.

Castle Square is an independent, specialist mid-market corporate finance boutique operating from offices in Sheffield and Leeds. Castle Square has a proven track record of successfully delivering corporate finance services on a wide range of clients based across the UK and internationally.

Director Patrick Lynch and Associate Director Lisa Ritson, from the Castle Square Team advised the Buyer on the acquisition.

Patrick Lynch, Director at Castle Square Corporate Finance said, “Having been introduced to Darren we began searching for acquisition opportunities and it is fantastic to finally bring a deal to a close on his behalf. The existing Management Team have established Masteel as a key strategic partner for steel mills located throughout Europe and the Rest of the World, supplying on to a range of customers across the globe. With Darren’s technical and operational know how, I am sure the Masteel Group is poised for significant growth in the years to come”.

Shawbrook is a specialist bank, offering wide range of savings and funding facilities for both business and personal clients.

Steve Armstrong, Director at Shawbrook, said “This was an excellent opportunity for Shawbrook to provide assistance to a seasoned steel-operator to acquire a strong and growing outfit in the form of Masteel. Masteel provides a compelling product, leveraging both impressive buying power as well as their deep understanding of steel products and the associated supply chain. We at Shawbrook are excited to see what the future holds for Masteel.”

The Progeny Group is an independent professional services firm providing financial planning, investment management, tax services, HR and legal counsel to clients across the UK and Internationally.

Led by Senior Legal Counsel Philip Jordan and supported by Senior Solicitor Tobias Adkins, the Progeny corporate law team provided legal advice and support to the Buyer on the transaction.

Phil Jordan, Senior Legal Council, said, “We were delighted to provide the legal support to assist Darren in acquiring a controlling stake in the business. It has also been a pleasure to work with the team at Castle Square Corporate Finance on the project. Despite the obvious logistical challenges and the uncertainty of the current financial climate, we forged a robust and productive working relationship which drove the deal to completion”.

Birmingham office of Shoosmiths advised the funder Shawbrook from a legal perspective whilst UHY Hacker Young provided Financial Due Diligence advice. Other advisors on the transaction were SHK Solicitors led by Sasha Gripgans and Achieve Corporate led by Mark Roberts, who both advised the Seller.

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NOTES TO THE EDITOR

 

Yorkshire based Castle Square Corporate Finance offer pro-active corporate finance advice to clients throughout the UK, tailoring our service to our clients and their markets, giving us an enviable record of successfully completing deals, including acquisitions and mergers, Management Buy-Outs

and Buy-Ins, finance raising and disposals.

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