MBO Ensures Continuation Of A 37 Year Legacy

A North East hydraulic manufacturing company has secured its future success, and the continuation of a proud 37 year history, thanks to a management buy out (MBO) deal brokered by accountants UNW, Crutes Law Firm and The Royal Bank of Scotland (RBS).

The Ferschl Group, which consists of seven separate companies, was founded in 1971 by local entrepreneur Bill Martin at the age of 61. Mr Martin, who is now 98, still lives in County Durham today.

During the last 37 years the business has grown steadily, most recently under the leadership of former owner and chairman Jim O’Neill, and has found its niche in a difficult engineering marketplace.

The company employs 110 staff in the region supplying hydraulic hosing, hose manipulation and electroplating services to a broad industrial customer base across the UK.

The new owners consist of current Managing Director, Paul Jordan, fellow Director Peter Sermon and shareholders Brian Tones and Jim Robinson. All the new owners have over 25 years service working for Ferschl. Their purchase was funded by The Royal Bank of Scotland plc who were advised by Muckle LLP.

The previous owners, Jim O’Neill and his wife Patricia have retired from the business which has facilities in the Team Valley in Gateshead, Ashington, Peterlee and Middlesbrough.

This year Ferschl turned over £8.5 million and the new team hope to build on this next year with steady growth in the region of 5% per annum.

Neville Bearpark, Corporate Finance Partner and Zara Lane, Corporate Finance Manager at UNW accountants, advised the new owners on the MBO from the outset and will continue to work with the new team going forward. Anne McCulloch, Corporate Partner and Tom Bowes, Solicitor from Crutes Law Firm advised on all legal matters. Rob Gilbertson, Manager Commercial Banking, and Peter Smith, Associate Director, Structured Debt Solutions at RBS, provided the funding package designed to support further growth of the company.

Paul Jordan, MD of Ferschl, said: “Crutes, UNW and RBS have been a pleasure to work with during this process. They have been a stabilising influence throughout, and their professionalism and knowledge has been invaluable. We are all delighted with the role they played in pulling this deal together.

“As a team we now look forward to the future and are excited at the prospect of building on the excellent foundations already established at Ferschl.”

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