Stainton Metal backed by NVM and Bank of Scotland

Investee Company – Stainton Metal Company Ltd (UK)

Investee Company Business Type – Manufactures street lighting columns, high masts, distribution and transmission poles

Type of Financing – IBO

Equity Providers – Northern Venture Managers

Equity Leader (Individual) – Tim Levett

Debt Providers – Bank of Scotland Structured Finance

Debt Type – £5.5 million

Debt Leader (Individual) – Neil McAdam

Equity Amount – £5 million

Total Deal Value – £10.5 million

Other Advisors – Ernst & Young, Bristol (Financial due diligence)

PWC (Commercial due diligence)

RDC-Turner Lombard (Operational due diligence)

Legal NVM – Dickinson Dees, Newcastle

Legal Bank of Scotland – Osborne Clarke, Reading – Hugh Jones

Comments – Bank of Scotland Structured Finance and Northern Venture Managers have backed the institutional buy-out of Stainton Metal Company Ltd from International Utility Structures Inc. Bank of Scotland Structured Finance provided £5.5 million financing and Northern Venture Managers put in £5 million equity.

Stainton has been trading since 1978 and is now the UK’s largest manufacturer of street lighting columns, high masts, distribution and transmission poles. The company has a well-established worldwide sales and distribution network and through this supplies its products to over 100 countries.

Director of Structured Finance at Bank of Scotland Neil McAdam, said:”This deal gives us the opportunity to back an experienced management team running a business with a 23 year record of successful operations, good cost control and improving net margins. With a favourable market, the prospects for the company are excellent particularly given its capacity for growth.”

Stainton are experiencing a period of growth due to a number of factors including the increase in construction of mobile phone atenna and the introduction of the Highways Bill allocating £59 billion to road building and maintenance.