A Preston-based mechanical and electrical engineering services provider is poised for organic and acquisitive growth after its management bought the business.
A Preston-based mechanical and electrical engineering services provider is poised for organic and acquisitive growth after its management bought the business.
T Jolly, which has been trading for more than 100 years, changed hands for an undisclosed sum in a deal backed by NBGI Private Equity.
The buy-out was led by Mark Gordon, who becomes chief executive following the acquisition of the business from the husband-and-wife team who have managed it for almost 30 years.
NBGI’s investment was led from its Manchester office by director Joseph Bergin, who declined to reveal the amount invested, but conceded that the private equity firm has taken a majority shareholding.
Gordon was joined in the deal by managing director George Jackson and head of finance Sue Lea. The buy-out team also included Joe Turner and John Slater, the company’s heads of installation and maintenance respectively.
NBGI funded the deal from its £100 million second fund, with debt provided by Swedish bank Svenska Handelsbanken.
Gordon said he intends to grow the business in the northwest. “The management team are delighted to have been given the opportunity to take T Jolly forward as an independent business.”
Bergin, who joins the board, added that T Jolly has a strong position in the northwest. “We look forward to supporting management in its plans to take the company to the next level.”
The vendors, Alan and Susan Stoker, were advised on the financial and tax issues of the deal by Tenon, which has advised the company for several years.
The firm’s team, led by director Jane Parry, advised on the structuring of the deal and on tax planning as well as providing transaction support.
Tenon also had two further teams working on the deal, with director Michael Lucas providing tax advice to the purchaser, and senior manager Julie Flintoff carrying out financial assistance audit work.
Parry said this was a win-win deal. “The main shareholders can walk away from the business knowing that its future is in safe hands and that their long-standing employees have a bright future.”
She added that Gordon worked alongside Alan Stoker as a consultant several months before the deal. “He was therefore in a unique position to get to know the company and start to shape its future. He was also able to get to know the key employees and to involve some of them with the buy-out.”
A commercial due diligence report on the target company was complied by property management consultant LandmarkFMC, which also provided strategic advice.
Its team was led by Ian Elliott who said the firm appraises many facility services providers for potential buyers and found T Jolly to be one of the best it has examined in recent years. “It should provide a good base upon which to grow a strong regional player.”
T Jolly, which also has sites in Blackpool, Bolton and Wigan, provides its services to the public and private sectors. It designs and installs heating, ventilation, electrical and air-conditioning systems for new buildings and refurbishments, as well as maintenance and emergency response services to property owners.
