Corporate finance team advises on MBO at automotive parts business

A company which designs and manufactures specialist automotive parts has been bought out by its management team, in a deal supported by our corporate finance division.

Bailcast Ltd, which distributes its rubber vehicle parts to over 40 countries worldwide, including Europe, the US, Canada, Australia and New Zealand, has been purchased for an undisclosed sum.

The company’s finance director Lorraine Alty, sales director Martin Calley, and operations director David Hartley have acquired the business from founder Philip Hayward who will retain a minority shareholding.

The deal team at MHA Moore and Smalley was led by corporate finance director Stephen Gregson and tax partner David Bennett.

Philip, who established Bailcast in 1980, said:

“The business has been in the safe hands of our excellent management team for the last few years and it is a pleasure to be able to offer them ownership in the business.

“This deal ensures a seamless transition and continued certainty for the many stockists and distributors worldwide who have come to rely on the quality of our products.”

David Hartley, operations director at Bailcast, added:

“The business has been successful because of its strong engineering pedigree, backed by excellence in research and development. This ethos has allowed us to provide great products and outstanding customer care to our distributors across the world. With Philip’s continued support, we will stay true to these values as we continue to develop new markets.”

Stephen Gregson commented:

“It’s been a privilege to support a longstanding client of the firm. Not only does this deal help the founder achieve value from a business he developed over many years, it means Lorraine, Martin, and David can build on the success they have already enabled, taking Bailcast forward to the next stage of its journey.”

Bailcast makes rubber parts for vehicle drivetrain, steering and suspension systems, primarily for the spares and repairs aftermarket.

Its patented worldwide products include market-leading CV joint boots and steering rack boots, as well as ball joint dust covers, fitting tools and accessories. The business employs 13 staff at its headquarters at Chorley North Industrial Park.