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.