Hurst advises on sale of Caldo Oils business

Manufacturing | Mergers & Acquisitions | North West

A fuel and lubricants business run by the same family for nearly 100 years has new owners following two separate deals.

Caldo Oils was founded in 1922 by five brothers – Austin, George, John, Leo and Walter Scott.

The St Helens-based business was originally called the Caledonian Oil Company and changed its name in 1951.

Its bulk fuels business supplying DERV, petrol, heating oils for home and industry, gas oil and tractor diesel for farms and off-road machinery, and kerosene for oil-fired ovens, heaters and lamps has now been sold to Cheshire-based NWF along with the Caldo trading name.

The business has facilities in Newton Abbot in Devon and Rhuddlan, North Wales, as well as in St Helens.

The group’s other business, manufacturing coolant, antifreeze, lubricants and greases for vehicles and engines, has been rebranded as Multispec and sold to Aztec Oils, which is based in Bolsover, near Chesterfield.

The combined revenues of Caldo’s bulk fuels and manufacturing businesses were £8.1m in the year to June 2019. They employ 29 staff.

Financial terms of the transactions are undisclosed.

Following its acquisition, Aztec will oversee the site in Worsley Brow, St Helens, where manufacturing under Multispec’s Hallett Steam Oils brand will continue.

Nigel Barratt and Ryan Niblock of HURST Corporate Finance and Liz Gallagher and James Hamilton of HURST’s tax team advised Caldo Oils’ owners Michael and Tim Scott – grandsons of co-founder Walter – on the transactions.

Paul Johnson, Rachel Clarkson and Hollie Walsh, of law firm Ward Hadaway’s Manchester office, provided legal advice.

Ryan Niblock said: “Caldo Oils has a great history, a strong reputation for quality of service and reliability, and has been a long-standing client of our firm. It was a pleasure to advise on these deals which have provided an exit for the owners.”

Michael Scott said: “As a third-generation family-run business, I have had the opportunity to see the business evolve and both Tim and I feel these deals bring a very nice end to our journey with Caldo. We are confident that Caldo and Multispec have an exciting future with NWF and Aztec respectively.

“HURST has advised us for many years and we really value the support we have received from the corporate finance team and the wider firm.”

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