A Black Country commercial contractor that works on retail developments has undergone a management buyout.
GI Sykes, a third-generation family business based in Stourbridge, employs 40 permanent staff as well as dozens of independent contractors.
The buyout gives control of the business to the existing management team led by Richard Downs who has become managing director.
Joining him are operations director James Sykes, who is a fourth-generation family member, contracts director Anthony Bennett and commercial director Dan Westbury.
The deal provides an exit for brothers Richard and Jason Sykes, who are grandsons of the founder, although they will continue to work with the business as consultants.
GI Sykes was established in the 1940s by Richard Sykes as a painting and decorating firm and took advantage of the post-war housing boom to expand its services.
The company now also delivers specialist coatings for cladding, roofing and flooring and carries out general building work, maintenance and repairs.
Clients include local authorities, developers, private landlords and commercial property agencies.
Among the projects it has worked on are Harvey Norman's new store at the Merry Hill centre in Dudley, MacArthur Glen designer outlet villages and for clients such as River Island, Home Bargains and McDonald's.
Mr Downs said: "The Sykes family have built a great business with a solid reputation and we are proud to be taking over the reins.
"We want to maintain the family business ethos which is all the more relevant as some of our employees now have their own children working in the business.
"We will continue to provide the same first-class service to existing clients while seeking opportunities to expand our service lines and client base.
"We aim to achieve steady growth, while continuing to support our loyal workforce and, through our apprenticeship scheme, nurture a new generation of skilled tradesmen in the region."
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To support the management buyout, GI Sykes secured a £720,000 funding package.
This was split equally between loan funding from Henley-in-Arden firm Mercia Asset Management to support the takeover and the Midlands Engine Investment Fund, via Birmingham-based fund manager Frontier Development Capital, to enable future growth.
Ryan Cartwright, investment manager with Frontier Development Capital, said: "GI Sykes is a great business and an important local employer, not only in terms of its direct workforce but also the work it provides for independent contractors in the region.
"The buyout will secure its future and enable the existing management team to pursue their growth plans to take the business forward."
Strategic Funding in Dudley advised GI Sykes on the deal.
