Stripes Solicitors Corporate and Commercial Team recently advised management of HQC Limited, the metal enclosures and components manufacturer based in Merseyside, on a management buyout. Steven Lindsay of accountants, CLB Coopers, provided Corporate Finance advice.

The management team, led by newly appointed Managing Director Eoghan McTiernan, Finance Director Sheila Bowden and Operations Director Peter O’Neale, took control of the business on 7 March 2011, with the full and ongoing support of the departing shareholders.

Equity financing was provided by an investor consortium led by APW Manufacturing Solutions and Greenfold Partners, while debt finance was provided by Lloyds TSB Corporate Banking, Liverpool.

HQC Limited provides metal enclosure and assembly services to some of the world’s leading players in the telecoms and data networking industries in Europe and North America.  The company began trading in 1986. Turnover is currently approaching £4m and around 60 staff are employed at their premises in Haydock.

Eoghan McTiernan said: “HQC has come through the downturn relatively unscathed and is in an excellent position to expand its services globally.  With the help of our new investors, HQC will become a truly international service provider that both its customers and staff can be even more proud of.”

Background: Businesses sought involved in industrial manufacturing/distribution. Well established and profitable (EBIT between £1m and £4m p.a.). Strong NAV, no/little debt, positive cash flow and preferably operating within a niche market.

Ref: MD11 1661

Background: Business sought involved in the manufacture/sale of tools or other hand-held industrial equipment or fasteners.

T/o <£10m.  UK or Europe based.

Ref: MD11 1651

Background: Provider of short respite and longer term residential care to older people.

Single site operation, large detached property, set in well maintained grounds. Registered capacity 24 places, CQC quality rating 2 star (good).

T/o £312k, EBITDA £35k.

Ref: MA11 2751

Background: Strong brand name with loyal customers, including blue chip companies and main contractors.  Nationwide service delivering prestigious and high profile works.  Offers niche, regulated coating services that are expected to generate growth. Proven specialist expertise and a reputation for a tailored, high quality service. Leased premises including a purpose built short blast and coating facility.

T/o £7.6m, recurring EBITDA of £736k.

Ref: MA11 2741

Background: One of Europe’s largest distributors of their specialist range of products, supplying mainly the UK market but also continental Europe.

Excellent reputation for providing quality products and client service, offering a range of different price points and the ability for their customers to generate attractive margins from consumers.

The company has an exclusive European Licence to distribute a specialist range of A-branded products, but 60% of sales is made up of its own brands.  The total range consists of c.600 products and they fulfil 90% of orders from stock.

Operations are from own freehold warehouse providing superb access to national and international transport links.

T/o £3.5m, adjusted underlying earnings of c. £250k.

Ref: MA11 2731