Jan Frayne has bought out the CG Rees group of metals supplier companies of Gabalfa, Cardiff, from founder and managing director Colin Rees, who is retiring from the business. The £1.3 million deal, which will see the company re-named Fromstock, has been supported with an Assembly Investment Grant and a £650,000 loan from Finance Wales.
Frayne has been with the company for more than 17 years and will become owner and managing director of Fromstock.
“Colin [Rees] wanted to ensure the company continued trading and an MBO was an obvious avenue,” commented Frayne, who plans to extend the business and create new jobs.
Andrew Coles, investment executive at Finance Wales, said the deal demonstrated the importance of established privately-owned companies setting out viable succession plans, such as in the case of Rees. Coles added:
“Working with Finance Wales and the other partners, Jan Frayne was able to secure the MBO.”
Advisers to Frayne were CODA Business Management, New Law and BPU Accountants. Finance Wales were advised by Broomfield and Alexander and Go Industry.
Go Industry’s DoveBid group acted as inventory valuers for CG Rees. Neil Smith, ABL Senior manager at DoveBid commented: “Go Industry DoveBid have a specialist inventory valuation team, who carried out an appraisal of the steel stock in order that the lender can take a charge on this asset as part of the funding arrangement.”