News: Sheffield manufacturer expanding on to AMP

Safety Engineering Products Limited, a leading UK designer, manufacturer and supplier of height safety equipment, has taken on a new unit on the Advanced Manufacturing Park (AMP) site in Rotherham.

Harworth Group plc, a leading regenerator of land and property for development and investment, has successfully let one of its two remaining built units on a ten year lease to the Sheffield firm which is expanding in the Spring as part of its plan to increase production following successfully delivered projects at the likes of Battersea Power Station and Canary Wharf.

The deal for the 13,223 sq. ft Unit 5B is at a rent of £7.50psf. Gent Visick acted as letting agent and Keebles acted as Harworth's lawyers.

This deal means that only one unit – the 17,359 sq. ft Unit 5A – remains to let at the Advanced Manufacturing Park. Harworth has now built 1.5m sq ft of its 2.1m sq ft consent, aimed specifically at growing manufacturing businesses wanting to be close to either the University of Sheffield's Advanced Manufacturing Research Centre (AMRC) or to existing occupiers at the park including Boeing, Rolls-Royce, McLaren Automotive and the UK Atomic Energy Authority.

The AMP forms part of Waverley, Yorkshire's largest ever brownfield redevelopment set over 750 acres that has already delivered 900 new homes of a 4,000 home consent and will also deliver a range of new community & leisure facilities. 2,000 people now work at the AMP, four times the number that worked at the former Orgreave Colliery & Coking Works that sat on the site over three decades ago, and is estimated to deliver a total of 3,500 high-value jobs once fully developed.

Peter Henry, Director of Yorkshire & Central, Harworth Group plc, said: "Our vision for Waverley was to create Yorkshire's biggest and best new community and the delivery of space to support the growth of a quality local manufacturer firmly fits within this. We now have further land available for the AMP's next phases and ultimately we want to attract further original equipment manufacturers and their supply chains to be part of its ongoing success.

Mark Richardson, Managing Director of Safety Engineering Products Ltd, added: "Safety Engineering Products are excited to relocate the business to the prestigious Advanced Manufacturing Park in Rotherham. The new 13,000 square foot unit will enable us to sustain and increase the growth of business we have seen in the past 18 months."

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Harworth will spend the remainder of 2020 promoting its remaining unit to let, alongside its continued promotion to advanced manufacturers of the remaining available land and its in-house building delivery service to provide the units to their specific requirements. Gent Visick and Knight Frank continue to act as agents for the development.

Tim Powner, Asset Manager, Harworth Group plc, said: "This is an excellent deal for all parties, supporting Safety Engineering Products' growth whilst delivering a long-term income stream to Harworth that pays for the overheads of our business. Reported demand at the AMP from occupiers wanting to be close to the University of Sheffield's AMRC is strong and we expect to let our remaining unit in short order."

Dan Walker, Chartered Surveyor at Gent Visick, added: "The lack of quality new supply in the region, combined with the high quality of the units at R-evolution, was a perfect fit for Safety Engineering Ltd's business. Unit 5A is the last remaining building of a high quality energy efficient scheme, benefitting from a clear height of seven metres, and we’ve already had strong interest in the first month of this year."

Safety Engineering Products website



Images: Harworth

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News: MBO at Rotherham alloy firm

Rotherham-based Alloy Services Limited has been acquired in a multi-million-pound management buy-out.

The £30m turnover processor and supplier of speciality alloys is based in Dinnington and was established over 25 years ago by Alan Fisher. It has developed to become one of the UK's leading specialists in processing and recycling high-temperature alloys and metals. The company supplies products for extremely demanding end-use applications, in industries such as aerospace, oil & gas and medical.

The company has been acquired by its managing director, Stephen Hall, with funding to support the transaction provided by Shawbrook Bank.

Hall said: "Firstly, my thanks must go to Alan who has nurtured and developed Advanced since its inception over 25 years ago. It's this legacy that I will be building on, and I'm absolutely delighted to have the opportunity of taking this exceptional business into the next chapter of its growth. We will of course be continuing to work closely with our suppliers and customers, with the support of the fantastic staff here at Advanced."

BHP Corporate Finance acted as lead advisor on the transaction.

Kevin Davies, partner at BHP, said: "I am delighted to see Advanced Alloys step into this next exciting stage, Stephen has ambitious plans for the future of the business. An innovative funding package was required to support both the structure of the deal and Advanced's working capital cycle. It is further demonstration of the funding appetite we are seeing for carefully prepared and structured transactions."

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Nick Salmons from Shawbrook Bank, added: "At Shawbrook we've worked on a number of advisor-led MBOs this year and this is a great example of how working closely with the team at BHP and Advanced Alloy Services has delivered another solution that doesn't just support the transaction but also provides the headroom to deliver further growth."

Peter Crawford and Emily Pogson of Freeths provided legal advice. Peter said: "Advanced is a very strong business with a great future ahead of it. We have enjoyed working with Stephen to bring this transaction to completion and we look forward to watching Advanced continue to develop and grow under his direction."

Other local advisors to the transaction were Paul Trudgill and James Burdekin of Keebles who acted for the vendors, and Dean Gormley and Hayley Johnson at Irwin Mitchell who acted for Shawbrook.

Advanced Alloy Services website

Images: Shawbrook Bank

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News: MBO at Rotherham manufacturer

Rotherham headquartered Harvest Healthcare, a leading manufacturer and supplier of high-quality healthcare equipment, has changed ownership in a Management Buy-Out (MBO) led by managing director, Neil Davis.

Based at Templeborough, Harvest Healthcare manufacture and distribute quality healthcare equipment to the NHS, care home and community markets, throughout the UK and internationally. The company manufactures, supplies and services active and static mattresses and cushions, profiling beds, and moving and handling equipment. It has long term relationships with several national blue-chip care home groups as well as serving most local authorities around the country.

The deal, for an undisclosed sum, sees Davis acquire all of the shares in the company from founders Phil and Jim Hutchinson. Both Phil and Jim have steadily reduced their involvement in the day to day running of the company over the last few years.

Sheffield based dealmakers, Castle Square Corporate Finance, provided corporate finance advice to the management team, leading negotiations on transaction value as well as deal structure, and also running the fundraising process alongside law firm, Keebles who provided legal services and advice. HSBC provided the necessary finance to complete the transaction.

Davis joined the company in February 2017 and has transformed the fortunes of Harvest, delivering significant growth in turnover and profit, culminating in him being given an opportunity by the owners to put together a MBO bid.

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Neil Davis (pictured) said: "I am proud and excited to have the opportunity to lead the long-term development of Harvest Healthcare, and am grateful to the professional team who have helped make this possible. We are determined to help more and more customers provide exceptional care to their residents and patients, whilst building fulfilling careers for our staff, and growth opportunities for our supply chain partners."

Patrick Lynch, corporate finance executive at Castle Square, said: "It is fantastic to have advised the highly experienced and successful managing director and entrepreneur Neil Davis on the transaction. During the last 21 months Neil has been supported by the wider management team, in particular finance director Tim Woods, who has also provided tremendous support throughout the transaction.

"The buy-out gives Harvest the platform build on the recent success and continue to manufacture and supply innovative high-quality equipment supplied into multiple healthcare environments."

Matt Ainsworth, corporate partner at Keebles, added: "We are delighted to have worked on this transaction. Harvest Healthcare is a great example of some of the fantastic businesses we have in South Yorkshire that local funders and deal advisory teams can support. We are confident that Neil and Tim will capitalise on the huge potential in the care sector to drive the business forward."

Following the structured debt fundraising process led by the Castle Square team, HSBC emerged as the preferred funding partner - providing the acquisition finance on the transaction alongside working capital facilities.

Chris Alsop from HSBC's corporate team in Sheffield, said: "I am very happy to back this strong management team whom I am confident will take Harvest Healthcare from strength to strength."

HSBC were advised on the legal aspects of the transaction by Irwin Mitchell and financial due diligence was provided by Sheffield's BHP team. Hollis & Co provided specialist tax due diligence.

Harvest Healthcare website
Castle Square website
Keebles website
HSBC website

Images: Harvest Healthcare / Will Armson

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News: Whirlowdale deal stacks up for Scott Group

Rotherham-based Whirlowdale Trading Co Ltd (WTC), one of the UK's leading suppliers of pallet and transit packet solutions, has been acquired by Scott Group, a leading industrial supplies organisation base in Fife.

A family owned business that has been trading for over 35 years, Whirlowdale specialises in the supply of new and reconditioned panels to the food, retail, manufacturing, construction and pharmaceutical sectors. It began life as a solution to what to do with unwanted pallets in the food wholesale business and has grown into the UK's largest trader of used pallets.

The deal, for an undisclosed sum, will provide additional operational capacity and capability nationally, particularly in the reconditioned business, for the Scott Group which believes that the two businesses are ideally positioned to offer security of supply and support to customers in all parts of the UK across a diverse range of industry sectors.

Whirlowdale employs 85 staff and operates its pallet manufacturing and reconditioned business from eight locations in Rotherham (head office and site, both at Canklow), Burton, Rainham, Sedgefield, Birtley, Lincoln and Castleford.

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Alan Gibson, managing director at Scott Pallets, said: "The combined businesses will deliver enhanced security of supply through access to our exceptionally well established, diverse and controlled reconditioned pallet supply chains. WTC is a well-invested business with a particular strength in reconditioned pallet trading and facilities including strategically located sites, automated pallet production facilities, all adding significant service capability to our current offer.

"Customers will also benefit from our exceptional combined in-house depth of industry knowledge and technical competence. Together this will deliver industry leading, innovative service developments to support our customers, particularly in relation to sustainability and environmental objectives."

Andrew Pearce, the previous owner of Whirlowdale, added: "I'm delighted to be remaining as a director of the business and to be able as part of Scott Group to offer customers a more comprehensive choice. Our combined range of pallet products and services, delivered nationally is exceptional."

The deal was supported by HSBC with BTO and Campbell Dallas acting as advisers to Scott Group, and BHP Corporate Finance and hlw Keeble Hawson advising WTC and its shareholders.

Founded in 1987, Scott Group has grown considerably over the past 30 years through numerous acquisitions and organic growth across the UK and into Europe. Today it employs over 1,000 staff and has a £100m+ turnover.

Whirlowdale website
Scott Group website

Images: Scott Group

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News: Harworth acquires £2m Parkway office block

Harworth Estates has acquired Sanderson House near to its flagship Waverley development in Rotherham for £2.2m.

A specialist in brownfield regeneration, Harworth Estates, which is based at Waverley, is one of the largest property and regeneration companies working in the North of England and the Midlands. Its extensive portfolio consists of a total of 27,000 acres across 200 sites. It is wholly owned by Harworth Group plc which was created through the complex restructure of what was UK Coal.

Sanderson House is home to IT Software and Solutions business, Sanderson and sits alongside Advantage House, the home of offices for Energy Alloys and The Engineering Employers' Federation (EEF). Opposite the Advanced Manufacturing Park (AMP) it is located within the emerging Advanced Manufacturing Innovation District (AMID), which is backed by Harworth in partnership with the University of Sheffield, Sheffield Business Park, Sheffield Council and Rotherham Council.

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Harworth's purchase of Sanderson House, which represents a net initial yield of 13.3%, is its second acquisition of an income-producing investment property over the past year, following the purchase of Sinfin Lane Industrial Estate in Derby for £6.95m in September 2015. Harworth's investment portfolio now totals 1 million sq ft in the Midlands, Yorkshire and north east of England.

Dave Travis, associate director of business space at Harworth Estates, said: "Sanderson House represents a solid acquisition in an area we are already heavily investing in through our Waverley development.

"We will continue to focus on improving the recurring income base of our business and we will aim to make further acquisitions where appropriate."

Harworth's property advisers on the deal were Bilfinger GVA and Knight Frank. Hlw Keeble Hawson provided legal advice.

Barry Riley, associate at Bilfinger GVA, said: "Harworth has unprecedented knowledge of the local market and Sanderson House has great potential. Harworth's excellent track record and ability to purchase the building quickly helped secure the purchase off-market."

Richard Smith, partner at hlw Keeble Hawson's Sheffield office, added: "Over the past six years hlw Keeble Hawson has been pleased to represent Harworth in a series of high-profile deals – including the purchase of Sinfin Lane Industrial Estate – as it continues to develop its powerful property portfolio. The latest purchase of Sanderson House also enhances the wider vision to attract both global and local businesses to the emerging and vibrant Advanced Manufacturing Innovation District."

For the year to the end of December, Harworth Group posted pre-tax profits of £77.6m - up from £3.5m in the previous year. The figure includes the £44.2m gain arising from the successful acquisition of the remaining 75.1% of Harworth Estates Property Group Limited.

On an underlying basis, operating profit increased to £2.1m from £0.8m in 2014. The group said that the gains in value from disposals and revaluation significantly exceeded expectations with total value gains from disposals of £40.4m, nearly double the £23.6m of the previous year. This resulted in an operating profit, before exceptional items, of £42.6m (2014: £24.4m).

The net assets at the year-end were valued at £297.7m, an increase of £47.4m on a like for like basis from the previous year. The group expects an acceleration of sales and investment in the portfolio, with further acquisitions expected from 2016 onwards.

Harworth Estates website

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News: Legal experts at Rotherham export event

hlw Keeble Hawson will be bringing its legal expertise in international trading to a breakfast export event in Rotherham hosted by UK Trade & Investment (UKTI) this week.

Held at RiDO's Fusion @ Magna business centre on October 15, the session is aimed at entrepreneurs seeking to take their first step in exports, businesses wanting top tips on expanding overseas operations – and for anyone wanting to meet contacts who can share their expertise and global networks.

With four offices in Sheffield, Leeds and Doncaster, hlw Keeble Hawson is one of the region's biggest law firms.

Partner, Giles Searby, a high-profile specialist in commercial litigation and international trade, said: "We will be applying our experience to respond to questions from companies who need guidance about first time exporting in terms of how to contract the sale, what needs to be considered - and how to make sure you get paid.

"We also welcome approaches from more established traders seeking tips on topics that might centre on supply chain issues, managing cost and the division of risk under international commercial terms."

The event will offer unique insights into finding success overseas and guests will also be able to ask business leaders how they overcame the export challenges they have faced. Attendees will also receive a free copy of a new guide to international trade, Five Steps to Export, which offers simple advice on identifying new opportunities overseas and how you can find growth on foreign shores.

Organised by UKTI, the Sheffield City Region Local Enterprise Partnership (LEP) and RiDO, the business and regeneration arm of Rotherham Council, the free breakfast event will feature talks from three Rotherham export success stories - Gala Tent, Pyronix and Newburgh Engineering.

Michael Peacock, commercial litigation partner and head of the manufacturing sector group at hlw Keeble Hawson, said: "We are delighted to be involved with this initiative as there is huge growth potential in exports, which many companies in the region could harness. Events such as this to help signpost them to experts who can help fulfil their international trade aspirations are invaluable."

UKTI Yorkshire & Humber website
hlw Keeble Hawson website

Images: UKTI

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News: MSSR pumped with further investment

Rotherham-based MSSR, which specialises in building petrol forecourts and ancillary services nationwide, has secured a second cash injection from Yorkshire turnaround fund, Seneca Investments.

The growing Canklow-based firm was first backed by the investors in 2012, in a deal that saved 23 jobs. MSSR is one of a three-strong group of complementary businesses in which Seneca has invested £1.3m over the past 15 months.

The other two are retail display systems specialist T & E Display in Birmingham and Tienda, an interior design and construction company based in Grantham and Cambridge. MSSR acquired Tienda Limited with backing from Seneca Investments last year.

Seneca, which was set up in 2011 to support the SME arena in a tough climate, has backed 13 companies in and around Yorkshire.

MSSR was founded in 1989 to provide specialist petrol forecourt construction services to the oil industry. They have been involved in over 1,000 sites nationwide and works with companies such as Asda, Total Oil, BP and Texaco. With a turnover of £5m, it has recently taken on two new members of staff.

Michael Cantwell, a corporate partner at law firm hlw Keeble Hawson which acted for Seneca, said: "The MSSR deal will boost growth, continue to build a new client base for all three complementary businesses and be able to offer clients a full turnkey package – all of whom will benefit from a high level of strategic expertise and capital investment from Seneca."

Patrick Bywater, director at Seneca, added: "This second funding injection for MSSR is aligned to our strategy to bring the three businesses together into one dynamic group in the near future."

MSSR website

Images: MSSR

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News: Acorn invest £1.25m in new Rotherham premises

From little acorns.... Acorn Industrial Services Ltd is making a £1.25m investment in new premises in Hellaby, Rotherham.

The Masbrough company is one of the largest power transmission distributors in the country and supplies bearings, power transmissions and linear systems to a global customer base.

The company's success has led to its expansion into three separate warehouses – still a tight squeeze for its 38,000 product lines and 80-strong team of office and warehouse staff.

A £700,000 injection of funding from Barclays has enabled the £18m turnover business to purchase new 40,000 sq ft premises – twice the size of the existing sites combined and more than capable of housing the company's £4m worth of stock alongside all head office functions.

Acorn is also investing a further £250,000 of its own capital in refurbishing and refitting the Denby Way building that was previously home to bus manufacturer, Optare.

Martin Povey, financial director at Acorn, said: "The company has achieved year on year growth for the last ten years. We're absolutely delighted with the new premises and the funding injection means we have the luxury of refurbishing the offices and warehousing to exactly the right specification before moving in.

"The new premises are more conveniently located for national and international distribution channels, enabling us to fulfil orders even more effectively, and doubling our space will literally open the door to further growth, increases in stock lines and more new jobs for local people."

Richard Smith, partner at hlw Keeble Hawson, who advised Acorn on the deal, added: "Acorn is one of the region's success stories. It's very rewarding to be involved in its "journey" and we're delighted that the company will soon have the facilities to support its ambitious development plans."

Pete Wilmer, relationship director at Barclays, added: "Acorn and its management continue to outperform expectations which is testament to their hard work. This move to new premises will not only deliver operational efficiencies but provide a platform for ongoing gowth which we are delighted to have been able to support - and by utilising the National Loan Guarantee Scheme have been able to provide a cashback element to help support the relocation costs."

Acorn Industrial Services Ltd website

Images: hlw Keeble Hawson

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