Garbutt + Elliott advise on Vendor Initiated Management Buy Out at The SCS Group
The SCS Group (SCS), who employ 46 staff across Yorkshire, has announced a Vendor Initiated Management Buy Out (VIMBO) financed by Allied Irish Bank (GB)* for an undisclosed sum. Management were advised on the deal by Garbutt + Elliott and Schofield Sweeney.
Founded in 1994, with an annual turnover in excess of £20 million, SCS is a specialist contractor in the supply and installation of Steel Framing Systems, Metal Stud Partitions / Dry-Lining, Suspended Ceilings, Glass Reinforced Gypsum Profiles and Encasements. The business will be celebrating their 25th anniversary next year and has an established reputation for delivering quality projects and works with construction contractors across the North and Midlands. It is headquartered in Stanley in Wakefield.
Mark Billington and Matthew Fannon from Allied Irish Bank (GB) worked together to structure a funding package to support the transaction and were introduced to SCS Group by Corporate Finance advisors Richard Feltham and Mark Phillips from Leeds and York based accountants, Garbutt + Elliott.
The buyout has been built around a planned succession strategy with shareholders Rodger Lambert, Andy Morson and Trevor Watson seeking to retire to allow existing key personnel a stake in the business. The new shareholder directors are Darren Friend, Paul Flynn, Craig Scott and Michelle Chappell Dixon.
Rodger, Andy and Trevor will continue to be involved in the business within their current roles, which will allow the business to smoothly evolve into the next stage of its development.
Darren Friend, the new Chief Executive for SCS Group said: “Having been on the board for the last 9 years and working closely with Michelle, Paul and Craig who were in senior management positions, I know we have a wide range of skills and personalities who know the business inside and out. These are very exciting times as we look to move the business forward with the help and support from Rodger, Andy and Trevor along with all of our great staff who continue to be an integral part of the group”
Rodger Lambert, former Chief Executive and now Non Executive Director at SCS said: “We are committed to the long-term future of SCS and know we are passing on the management of the business to a very trusted and strong team. SCS has gone from strength to strength since the company was established and it continues to evolve and grow.”
Mark Billington Business Centre Head at Allied Irish Bank (GB) in Leeds said: “SCS is a successful and prosperous business who have worked on a number of key projects. We are very pleased to support the next phase of their strategic growth. The new management team are extremely experienced and are well placed to drive forward the business.”
Richard Feltham, Corporate Finance Partner at Garbutt + Elliott said: “This is a great example of a well managed succession plan and buyout, demonstrating the importance of planning ahead of time for such transactions. SCS is a very strong regional business and AIB’s backing proves the availability of capital for the right businesses in Yorkshire”.
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