Outdoor lighting, railings and engineering products manufacturer Fabrikat has been sold in a management buy-out.
The Sutton-in-Ashfield business was sold by its two owners to the management team in a deal funded by Duke Royalty.
Fabrikat was formed in 1985 and has grown to become one of a handful of 海角视频 providers of street lighting columns, with an estimated 20 per cent of the 海角视频 market,
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It also makes almost half the BS-approved guardrails installed in Britain today.
In recent years it has diversified to supply around half the 海角视频’s market in decorative lighting poles and architectural metalwork for cityscapes and leisure settings, and provide management services to councils for things such as lighting-pole testing and geo-mapping.
It now supplies local authorities, wholesalers, OEMs and developers and has a turnover of more than £12 million with around 80 staff across its design, manufacturing and marketing divisions.
Sellers Martin Hopkins and Matthew Wass have each worked in the business for around 25 years, taking ownership in 2013 through two management buy-outs.
They will retain roles as consultants, and transfer ownership to a senior management team backed by a £6.2 million royalty financing package from Duke Royalty, which has taken a 30 per cent equity interest.
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The buy-out team is made up of financial director Paul Allen, general manager Mick Scott and technical manager Melvin Batty who have clocked-up over 70 years with Fabrikat between them.
They plan to further develop the business in its traditional and new markets.
Solicitor David Kaplan of Nelsons, who had been involved in the two previous transactions involving Fabrikat, advised the sellers to take corporate finance advice, introducing John Farnsworth and David Crump of Smith Cooper Corporate Finance (SCCF) who provided pre-sale preparation advice and project-managed the deal.
Smith Cooper’s Gary Devonshire advised on the tax aspects.
The sellers received legal advice from Nelson’s partner David Kaplan and associate Liz Mills who provided corporate advice, as well as Mary Gharmount and Sarah Burns who provided property advice.
Martin Hopkins said “Working with Smith Cooper since 2019 and Nelsons since 2011, brought into focus the long-term objective of our exit from the business.
“Smith Cooper’s advice carefully considered all available options, and timing of the deal was crucial.
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“The advisors were supportive at every stage of the process, making the transaction smooth and straightforward”.
The management team was advised by Flint Bishop corporate finance partner Martyn Brierley, who said: “It was a pleasure to be introduced to, and to advise, the management team on this successful buy-out.
“The team’s wealth of experience with Fabrikat, alongside Duke’s investment, places the business in a strong position for onward growth, with the continued support to be provided by the Sellers”.
SCCF Director David Crump said: “This is the second deal SCCF has structured which involves the innovative royalty-style funding offered by Duke. In the right circumstances - where there’s a good business and a strong management team – this can be the optimal solution for all parties.
“Certainly, in this case, the Duke proposal emerged as the best deal for the sellers and the management team alike.”
David Kaplan of Nelsons said: “I have found it very rewarding watching the evolution of the business and to be a key advisor throughout.
“It has been a pleasure working with Matthew and Martin and the team at Smith Cooper over the last few years in order to fulfil Matthew and Martin’s plans to sell the company to the senior management team.
“I am confident that under the control of the new management team and Duke Royalty, the company will continue to be innovative and successful and I wish them all the best for the future.”