Three directors at a Norfolk-based construction company have become shareholders in the business following a management buy-out.
Three directors at a Norfolk-based construction company have become shareholders in the business following a management buy-out.
F J Chalcroft Construction, which specialises in serving the general construction, telecom and food industries, has been bought by a five-strong management team as part of its business plan.
The buy-out was led by managing director Mark Reeve and head of finance David Reeve.
They were supported in the deal by new shareholders Paul Morley, operations director for its King’s Lynn business; Steve England, operations director for the telecommunications and renewable energy sectors; and Scott Wilson, operations director of its Pershore company.
The company’s management team is further strengthened by existing non-executive director Jim Crossley and the appointment of David Elsey in the same role.
The company was sold by Fred Chalcroft, who founded the company in 1979, and John Reeve, who joined the business in 1991. Although no longer shareholders, Chalcroft and Reeve remain with the company in their current roles.
Mark Reeve told reporters that the buy-out is an opportunity for the directors to invest in a successful business.
The buy-out was backed by debt authorised by Steve Harley, a relationship director at Lloyds TSB.
Harley said the bank is backing a strong management team. “Lloyds TSB provided a competitive package of debt to enable the transaction to complete and believe the business has a very sound base to grow and prosper over the coming years.”
The bank was introduced to the deal by David Whitehead, a partner at accountant Larking Gowen Corporate Finance, who was the financial and lead adviser to the buy-out team.
“We assisted throughout the whole process from negotiating the heads of terms, to preparing the documentation to secure the funding, to carrying out the statutory whitewash procedures,” Whitehead said. “In addition, we were pleased to offer personal tax and financial advice to the MBO team to ensure that they took advantage of all available tax reliefs.”
He added that the completion of this deal does not end Larking Gowen’s work with the company as it will continue to support the growth of the business and take care of the personal affairs of the buy-out team.
Lloyds TSB was advised by Howes Percival Solicitors, headed by Rob Colman, in relation to the transaction. Colman said he was pleased to assist the buy-out team and its current legal adviser in the detailed negotiations and drafting of the deal’s legal documents.
The buy-out team was advised on the legal issues of the deal by March & Edwards, led by Robert Alexander.
Alexander, who has worked with the company for the past 30 years, advised on all corporate matters including all the property issues of the deal. The employment aspects were handled in-house by Chalcroft.
“Due to the complex nature of the transaction it took some time to complete,” Alexander said. “The deal was of the utmost importance to the client and March & Edwards looks forward to supporting the company it in its bright future.”
Chalcroft has 172 employees working across four sites in the UK managing anything from small works through to major projects up to £10 million.
Further information:
Established for over 115 years, we are a major regional independent business advisory partnership. Our specialist services include a corporate finance department that deals with acquisitions, disposals, management buy-outs etc.
A forward thinking, innovative provider of expert legal advice and ranked as a market leader for corporate and commercial work. In 2006 were judged the ‘UK Regional Law Firm of the Year’ at the Legal Business awards.
March & Edwards is a Worcester-based law firm with a specialist team advising on all aspects of the law relating to business. March & Edwards supplies advice of high value and quality both locally and nationally.
