The entire ordinary share capital of North East based bulk haulage specialists Hargreaves (UK) Plc has been acquired by a management team and Baring English Growth Fund. The management team, led by Chief Executive, Gordon Banham, and Financial Director, Peter Dillon, successfully completed the £19.2 million acquisition from the owner and founder Bob Young on Friday 30th April 2004.
Gordon Banham stated “We are delighted not only to have acquired the company with the help of Baring English Growth Fund, but also that Bob Young has agreed to remain as a director for a period of three years. The company has strong trading results, a healthy order book, and we are confident of achieving further sustained growth”.
Hargreaves (UK) Plc, which was founded in 1994, is one of the major independent companies in the North East and is the largest bulk haulage company in Britain.
From its headquarters at Esh Winning, Co. Durham and through its national network of depots, the company has also generated substantial waste haulage contracts and is a major supplier and processor of carbon based minerals from its specialist facilities at Immingham and Newport. It also has biomass and ash handling facilities at several Yorkshire power stations.
The company turnover to 31st May 2003 was £62 million with an operating profit of £1.9 million.
Bob Young stated “I am pleased to be able to continue to assist the growth of the company in the future and believe the management with strong financial backing from investors and its bankers, will grow both organically and by acquisition from the sound base that exists”.
The Baring English Growth Fund, represented by Nigel Barraclough commented “We have been impressed by the quality of the company’s management who know these industries and businesses inside out, by their plans for the continued development of the business in the years ahead and by the strength of the business’ existing customer base. We are very pleased to be backing this buyout”.
Key advisors were:
Hargreaves’ Auditors
KPMG
Newcastle
Vendor’s Solicitors
Ward Hadaway
Newcastle
Hargreaves’ Solicitors
Walker Morris
Leeds
Company Bankers
Royal Bank of Scotland
Newcastle
Baring Solicitors
Hammonds
Leeds
Enterprise Finance Europe
London
Advisors to Management
Equity Ventures
London
Bank of Ireland
Dublin
Baring Financial Advisors
PKF
Leeds
Company Tax Advisors
Leathers
Durham
Advisors to Baring
Yorkshire Fund Managers
Leeds
Company Insurance Brokers
J.W. Burley & Partners
Sheffield
For further comment please contact:
Hargreaves (UK) – Gordon Banham or Peter Dillon
Hargreaves Services Limited
West Terrace
Esh Winning Industrial Estate
County Durham
DH7 9PT
Tel: 0191 373 4485
