A family company, whose founders are still associated with the business 70 years after it began trading, have completed a management buy-out (MBO) of one of their divisions.
The deal was completed by Swindon-based corporate finance specialists Watersheds.
S E Davis and Son Limited, which was founded by Sid Davis in the 1930s, began as poultry breeders, but by the 1950s Sid’s son Bob diversified into transport by transporting hay and straw from the East Coast to Wales.
This grew into the current multi-division company run by Bob’s son Andy, which today offers a range of services and materials to the agricultural and construction industries.
Andrew Manson-Jenkins, who is a director and manages the division, and his husband Craig, who is an administrator at the company, expressed interest in buying the business.
Lucy Gilbertson, whose grandparents Bob and Christine are still involved in the company, had been given Watershed’s details by another haulage company.
“We’re professionals in our own field, but knew nothing about management buy-outs (MBOs) because we’d never contemplated selling part of the company before,” said Lucy.
“But Jessica Painter came to see us and couldn’t have made the process easier. She took us through the procedure and explained everything we needed to do in detail. She made the transfer feel quite simple for us, because she’s handled everything.”
Jessica Painter, a partner with Watersheds, said it was a delight to work with the family to complete this deal.
She comments: “This particular deal was completed under exceptionally difficult circumstances, but we and the vendors were able to rise to the challenges and the result really is a win-win situation for everyone.
“It is a unique deal that has allowed two of the Company’s longstanding employees to acquire a business with a solid customer base of builders, landscapers, farmers and the general public.
“The business also benefits from its reputation as the leading aggregate supplier in the West Midlands, with a fleet of specialist vehicles for bulk haulage, and sustainable and recycled products that satisfy its customers’ corporate social responsibility requirements.
“Of course, the deal also protects the employment of the division’s staff and continued service to its customers too, so it’s a deal that is good news for everyone involved.”