29.08.2007

MBO at Mechan

Sheffield, UK, based lifting equipment producer, Mechan, has been sold to a Management Buy Out team headed by its business development director Richard Carr, with financial director Zahir Altaf, sales director Graham Cofield and technical director Christian Fletcher all of whom hold an equal share in the business.

As soon as the deal is completed, Carr will take over as managing director from current owner and founder Tony Hague, who will retain a small shareholding and remain as chairman.

Funding for the MBO was provided by South Yorkshire Investment Fund, alongside personal investment from members of the buyout team and ongoing banking arrangements with NatWest. The value of the buyout has not been disclosed.

Mechan has been designing, fabricating and installing cranes, jacking systems and other heavy-lifting gear for UK industrial customers since 1969, and is a major supplier to the railway industry world-wide.

“We have been in discussion since January with founder and major shareholder Tony Hague, who decided to sell some while ago,” said Carr. “So we were pleased to tie up an agreement that will enable Mechan to maintain the growth achieved over the past four decades. Tony retains a minority holding and the role of chairman.

“The buyout team is very confident about future prospects, particularly as export markets now provide extensive sales opportunities. We are also benefiting from increased investment in new rolling stock and maintenance depots in the UK, for which Mechan lifting jacks and other equipment are often specified.

“Successful conclusion of the buyout provides continuity and security for the business and its key people, whilst ensuring knowledge transfer and skills retention. We shall maintain our focus on customer service, product development and lean manufacturing to ensure cost competitiveness in both UK and global markets.”


Mechan will operate from its current premises until 2009, when relocation to a new facility is envisaged.