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SME Capital support Welsh-based engineering specialists MBO

SME Capital is pleased to confirm a facility to support the recent management buy-out of R&R Engineering Ltd (“R&R”), who were supported by the M&A and Debt Advisory teams at Mazars and the Corporate and Banking teams at Harrison Clark Rickerby’s

R&R was founded in 1987 and designs, manufactures and installs a host of structural and secondary steelwork including staircases, bridges and other architectural metalwork. 

R&R has obtained a position & reputation at the forefront of their particular field of activity and have worked on high profile projects such as Guys & St. Thomas’ Hospital, Liverpool One, Hinkley Point C and a number of Premier League Football Club stadia and more recently their local team, Wrexham AFC. 

The sellers, Cheryl Thomas and Steve Wingett have supported the management buyout team of Karl Davies and Derek Nurse, providing them with an opportunity to take full control of the business with financial backing from SME Capital.  

SME Capital have agreed to provide a bespoke 5-year term loan to facilitate the buyout.

Mazars Debt Advisory advised the company on securing the funding facility required to complete the transaction and the Mazars M&A team structured the transaction.

R&R Engineering Islington - SME Capital

Joint Managing Director of R&R, Karl Davies commented:

“Derek and I are absolutely thrilled to get this over the line and couldn’t have picked a better support group of Mazars and SME Capital.  Their attention to detail has been exemplary and the team are so easy to work with, which has made the transaction so much smoother.  We look forward to continuing this thriving relationship and this will no doubt help us as a company grow and flourish in the coming years. We thank everyone at SME Capital for their support and in particular James and Chris for their absolute professionalism and commitment to getting the deal completed as requested. “

SME Capital Regional Directors, James Lowe and Chris Collings, added:

“We are delighted to have supported Karl and Derek with their MBO. This is a long-standing, high quality business with a loyal customer base underpinning the quality of its service proposition. We’ve spent a good deal of time with the team and are thrilled to be backing the next stage of their growth journey. Many thanks to the Mazars Debt Advisory team for working with SME Capital on this transaction. It was a pleasure to work with Josh and the team who ran a fantastic process which helped the transaction complete smoothly on a tight timeframe”

The Mazars team consisted of Mark Day (Head of M&A, Midlands), Arran Smedley and Luke Middleton (M&A) along with Josh Thorneycroft (Director, Debt Advisory), who commented:

“We are delighted to have worked with such as well-established regional business with an excellent reputation in its sector. Cheryl and Steve have built a sustainable, high performing business, and we look forward to seeing its continued growth under Karl and Derek’s stewardship, who were already long-standing employees of the Company. It was a pleasure to work with SME Capital who demonstrated a great degree of flexibility throughout the process and impressed with their speed of execution.”

Clarion Solicitors assisted SME Capital with the deal legal documentation with Harrison Clark Rickerbys acting on behalf of the Borrower.  

If you would like to understand MBO financing in more detail, or find out more about our wider funding options, please do get in touch.

About SME Capital

SME Capital was founded to support the growing number of SMEs who face difficulty or frustration in accessing capital through traditional methods. We understand the importance of real and trusted relationships in the SME lending market and have dedicated Regional Directors based across the UK. By combining traditional lending expertise with the latest in data analytics, we are supporting established UK SMEs with their long-term objectives and business ambitions.

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October 2023

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