City support for take -over

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A conveyor company has moved into a new factory and boosted turnover by 60 per cent with the help of advisers from the South Yorkshire offices of Barclays Corporate and law firm hlw Keeble Hawson.

The deal, financed by Barclays Corporate, is part of a £1m investment in the expansion of the engineering department which means Worksop company Canning Conveyor now operates from two sites.

Recruiting 13 employees in the last three months alone, the firm has clinched contracts with London Mining, Fiddlers Ferry and Didcot power stations and industrial minerals giant Sibelco.

The 51-strong second-generation family business was founded in 1965 and turnover has risen 60 per cent to £8.5m in the last two years.

Paul Gibbon, a partner in the commercial property team of hlw Keeble Hawson, who acted for Canning Conveyor, said: “The new engineering factory, which incorporates fabrication, machine and assembly shops and offices, comes at a formative period for the company which is also investing in additional works, labour and engineering staff to accommodate increased orders and strong growth.”

The investment has been paid for with a mortgage finance facility.

Neil Bradburne, relationship director, Barclays, said: “This deal is a good example of the type of strategic and sophisticated transactions we are supporting and serves as a clear indication that Barclays is open for quality transactions in the region.

He said: “The management’s ambitious plans to double the size of the business are testament to their success, and will ultimately create many new and much-needed jobs.”

Meanwhile, a classic management buy-out at one of the country’s bigest valve wholesalers featured a good number of the city’s professionals and advisors.

Leengate Valves, based in Alfreton, was bought from German parent company Linde AG by a management team which led by founder and managing director Steve Pickering.

The deal was funded by ewquity and debyt finance from YFM Equity partners and HSBC. Lead advisor to the Leengate team was BHP Corporate Finance.