The operations manager at a Merseyside-based transport and warehousing business has bought the group for £1.1 million.
The operations manager at a Merseyside-based transport and warehousing business has bought the group for £1.1 million.
Darlington Group, which is based in the Wirral, has been bought by Keith Jones, who has become its managing director.
The group’s previous management team consisted of the founder’s grandson, John Darlington, and his business partner, Philip Honor.
The deal was backed with £400,000 provided by Merseyside Special Investment Fund (MSIF), with debt and working capital from Venture Structured Finance (VSF).
Jones said he is looking forward to leading the company. “Darlington Group has been operating for 78 years and has forged an impressive reputation throughout the UK. I have plans to develop the service elements of the company while maintaining the core relationships with our customers.”
MSIF’s funding was rubber stamped by investment director Malcolm Jones, while VSF’s package was arranged by regional director Neil Topping.
“Keith has an in-depth understanding of the business and we believe he has the drive and skill to take Darlington to the next level,” Malcolm Jones said. “We are pleased to be supporting him and believe the company will perform well under his management.”
Topping added that he is backing an experienced individual who has a proven track record. “The company has an excellent reputation within its market and we are confident Keith will continue to build on this.”
MSIF received was advised on its investment by a Mace & Jones team led by corporate partner, Bruce Robinson.
Robinson said: “We were pleased to be involved acting for MSIF on this transaction, which is yet another example of the unique role that MSIF plays in the Merseyside area in providing the mezzanine finance to enable this type of deal to happen.”
Bermans acted for the new managing director. DLA Piper supported VSF with law firm DWF acting for the vendors.
The due diligence review was conducted by chartered accountant Hurst (Liverpool) LLP. The project was led by managing partner Claire Jackson.
“The team subsequently provided follow up strategic guidance to Keith,” Jackson said. “We also provided the funders with a strategic risk review report and competitor analysis, which has helped pave the way to a successful start for Keith and his team.”
Darlington, which also has a site in Glossop, Derbyshire, was founded in 1930 and today has a £6.5 million turnover with 100 employees. As well as its transport and warehousing arm, the company supplies salt products, aggregates and gravel, and is a major collector of materials for recycling.
Its public sector clients include local authorities and transport networks while its private clients operate across the agriculture, chemical and food sectors.
