Controlled Speed MBO to accelerate growth
Article Date: Jan 12 2009
Phil Burns (centre)
A West Yorkshire-based manufacturer of motor control products for stairlifts has undergone a management buy-out (MBO).
Controlled Speed’s chief executive, Phil Burns, acquired a majority stake in the company in a cash deal, buying out his business partner and commercial director Mike Fitzgerald. The MBO was backed by The Co-operative Bank and Yorkshire-focused debt provider Partnership Investment Finance (PIF).
Jeff Fryer, business development manager at The Co-operative Bank, comments, ‘We are in a strong position to provide funding for existing and new customers, unlike some other lenders who seem to be more reluctant to provide funding at this time.’
Financial details were undisclosed, although the valuation of the £3 million turnover business is said to be more than £1 million. Burns and Fitzgerald bought Controlled Speed in a management buy-in in 2000, each taking an equal stake in the 25-year-old company.
The news comes as Controlled Speed relocates to a larger, purpose-built manufacturing facility seven miles from its original base. The new plant is expected to be operational by April and will enable the business to grow its workforce over the next 12 months.
The MBO was structured by corporate finance firm BTG McInnes and the buy-out team was advised by Leeds-based law firm Schofield Sweeney.
