12 February, 2008
Stainless Metric Stock (SMS), a leading steel stockholding business based in Darwen, Lancashire, has undergone a management buyout for a seven figure sum.
SMS was founded 27 years ago and specialises in supplying pipes and fittings for water and wastewater treatment and rollers for paper and pulp mills. The management team was led by an existing shareholder, Phil Cowley, who continues as managing director. The deal will allow the retirement of Chairman Eric Jones, who together with his wife Pat, were the majority shareholders in the company.
Award winning North-West law firm Forbes Solicitors advised the purchasers of Stainless Metric Stock. Daniel Milnes, the Business Law Partner who led the team, commented: "During the departure of the owner of an owner-managed business the transition period can be fraught with difficulties. This can be eased when there is a willing buyer and a seller able to assist the buyer in acquiring the business, provided that assistance is given on the right terms.
"This was exactly the situation with this acquisition. The fact that the owners of the purchasing company were all active members of the target company's management team meant that the buying process was more amicable and less contentious than can be the case in corporate acquisitions."