Harrogate-based CorpFin has been instrumental in a management buyout of UK tile specialist Johnson Tiles, which has a turnover of £35m at its base in Stoke on Trent.
The deal, which precedes a comprehensive restructuring of the business to safeguard the future of the respected British brand, was led by Chris Silverwood and Tony Norwood, partners at corporate finance and restructuring specialists CorpFin.
The management team, led by MD Stephen Dixon, commercial director Rich Kelsall, procurement director Jason Bridges and finance director Melanie Birks has assumed full control of the business having acquired it from former owner Norcros Plc with the full support of all parties.
An £8m revolving credit facility was sourced by CorpFin from Allica Bank, led by Ian Flaxman, head of growth finance, to provide working capital facilities to the new entity.
Chris Silverwood said: “In a challenging time for UK manufacturing, the future of the business demands a root and branch review of strategy in order to establish new firm foundations for success, and the MBO enables the first stage of that process.”
Tony Norwood added: “This was a highly complex situation successfully navigated due to the collaborative and pragmatic approach of the management team and Norcros, both of whom recognised that an MBO was in the best interests of all staff, customers and shareholders.
“The transition to a fully outsourced model, alongside the secured funding package, will allow Johnson Tiles to maintain its market leading position following the buy-out and ensure that the company is ideally placed to benefit from future growth.”
