Conveyor company moves forward with MBO
A Chorley company that supplies conveyor belts to some of UK industry’s biggest names has been acquired by its management team. Directors Mark Gladwin, Christopher Iddon and Andrea McKenna have completed a management buyout (MBO) of LVS IMAS Ltd from majority shareholder John Kelso, who is retiring from the business, for an undisclosed sum.
LVS IMAS, which has a turnover of around £6million and employs 12, supplies conveyor belts and associated equipment to a number of sectors including manufacturing, processing and waste recycling.
LVS IMAS was founded in 1997 and operates from Swansey Mill, Whittle-le-Woods. The company’s blue-chip client base includes steelmaker Corus.
The corporate finance team at Moore and Smalley Chartered Accountants and Business Advisors advised the management team on the buyout, raising the necessary funding to complete the deal.
Stephen Gregson, corporate finance director at Moore and Smalley, said: “Mark, Chris and Andrea have been successfully running the business for several years and this MBO represents the natural next stage in the development and growth of the company.”
Andrea McKenna, director of LVS IMAS Ltd, said: “We supply conveyor belts to a wide range of industrial sectors and we are seeing increased demand in the waste recycling and green manufacturing markets in particular.
“This MBO allows us to take the business forward, continuing our development in these key growth areas.”
Funding for the deal was provided by Lloyds. Legal advice was provided by Napthens solicitors.
Keith Melling, head of the corporate department at Napthens, said: “The management buyout by the team at LVS IMAS marks a great opportunity for the company and its employees, and I’m sure the past success of the business will continue well into the future under the new leadership.”