Jonathan Simms in our corporate team advised on the management of the transaction.
Sixty year old Huddersfield engineering company Sanderson Precision Engineering Ltd has undergone a Management Buyout in a seven figure deal which completed on 27 January 2014 with funding from Santander Corporate & Commercial.
Employing 17 people at its headquarters at Wellington Works in Lindley, the £1.1 million turnover company makes precision machined components from one off to large batches, CNC milling, turning and grinding.
The company was founded in 1954 by Stuart Sanderson, then under Malcolm Binns’ and later Richard Davenport’s management, it started producing parts for the pharmaceuticals and leisure, oil and gas, and automotive industries as well as for clients requiring precision engineered components. The business has a mixture of long standing and new clients and wins business by reputation, quality and customer relationships.
The MBO team that will now lead the business is headed by John Womersley who has worked for the company for 26 years and takes up the position of managing director; his wife, Donna, will be company secretary. The couple purchased the shares in Sanderson Precision Engineering via their company JW & DW Investment Limited from former managing director Richard Davenport. Having worked at Sanderson Precision Engineering since he was 15, Richard has now retired, but will continue to support the business on a consultancy basis. The handover has been part of a long-term plan for John to take over the business upon Richard’s retirement.
Managing director John Womersley said: “Having spent most of my working life at Sanderson Precision Engineering, I know the business inside out and see this move as a great opportunity to build on the company’s 60 year heritage.
“It will be very much business as usual for customers and staff. With a solid reputation as one of the leaders in precision engineering, I will be continuing to invest in plant, equipment, technology and personnel in order to maintain our market position and grow the business.”
The deal was handled by a team of Yorkshire advisers comprising Jonathan Simms, partner in Clarion’s corporate team in Leeds, who advised management on the transaction; Ian Parsons of Parsons & Co Chartered Accountants in Wakefield who structured the deal; and Linda Greenwood of Santander Corporate & Commercial which provided funding.
Former managing director Richard Davenport commented: “It is great news for everyone involved that the business is in John’s capable hands. I am confident that he will continue to build on its solid foundations and take the company forward, and I give my best wishes to John for the future.”
Linda Greenwood, relationship director for Santander Corporate & Commercial, said: “We are delighted to be involved in a management buyout to an in-house successor, who has spent his career at the business. Sanderson Precision Engineering is a strong business with an experienced management team and we look forward to continuing to support the business as it develops in the future.”
Jonathan Simms of Clarion added: “It’s satisfying to support such a well-established Yorkshire company to reach another key milestone in its development. The business has established a first rate reputation in this niche sector and with such an experienced management team at the helm, it will, no doubt, continue to prosper.”
>The Business Desk
>Yorkshire Business Insider
- Ends –
Shot 1 (L to R): John & Donna Womersley of Sanderson Precision Engineering; Riana Azam of Santander Corporate & Commercial; Ian Parsons of Parsons & Co Chartered Accountants; Karen McFalls and Linda Greenwood of Santander Corporate & Commercial, Jonathan Simms of Clarion; former managing director Richard Davenport
Shot 2 (L to R): John & Donna Womersley of Sanderson Precision Engineering; Ian Parsons of Parsons & Co Chartered Accountants; Riana Azam, Linda Greenwood and Karen McFalls of Santander Corporate & Commercial; Jonathan Simms of Clarion; former managing director Richard Davenport
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