New buyout deal values Amco companies at £14m

Back: Paul King ' Hill Dickinson, Neil Thompson ' Hill Dickinson, David Hunt - Lloyds Banking Group, Don Gray - BHP Corporate Finance,'Front row - L-R David Forrest - BHP Corporate Finance, Ian Swire (Amco), Yeri Menzie (Sheffield Eagles), Zoe Roberts - BHP Corporate Finance
Back: Paul King ' Hill Dickinson, Neil Thompson ' Hill Dickinson, David Hunt - Lloyds Banking Group, Don Gray - BHP Corporate Finance,'Front row - L-R David Forrest - BHP Corporate Finance, Ian Swire (Amco), Yeri Menzie (Sheffield Eagles), Zoe Roberts - BHP Corporate Finance

THE former management team from Amalgamated Construction have acquired sister companies Amco Drilling and Amco Developments. in a deal which values the businesses at £14m

Amalgamated was sold last month to specialist engineering and building group Renew Holdings for £19.8 million plus a deferred payment of £6.2million.

Now, investment group Endless has sold its stake in Amalgamated’s two sister companies to the management team led by managing director David Jackson and financial director Ian Swire.

Drilling is a leading provider of drilling services across West Africa and, closer to home, Developments is a property development company specialising in commercial, leisure and retail developments in the north of England including the construction of apartments in Arundel Street and the development of the old Gordon Lamb site off Ecclesall Road, both in Sheffield.

These two transactions complete Endless’ exit from what has been a highly-successful investment in Amco and bring to an end the successful partnership with management, which started in 2008 when Endless backed management in the the original MBO from Amco Corporation plc.

Darren Forshaw, partner at Endless, led the deals assisted by Aidan Robson, investment director, and legal advice was provided by Richard Naish and Peter Considine of Walker Morris.

Mr Forshaw said: “Our investment in Amco has proved to be one of the most successful we have ever made, delivering market-leading returns that we are extremely proud of.

The sale of Amalgamated Construction to Renew last month provided the platform to conclude the sale of the other Amco businesses to the management team and I know that all parties are delighted with the outcome.”

Legal advice to management was provided by Hill Dickinson Sheffield, with the team led by corporate partners Neil Thompson and Paul King. Hill Dickinson also acted for Endless and management in the deal with Renew.

Corporate finance, deal structuring and tax advice to management was provided by BHP Corporate Finance, with the team led by David Forrest, Don Gray and Zoe Roberts.

Banking facilities for Drilling and Developments were arranged by David Hunt, Relationship Director of Lloyds Bank Corporate Markets in Sheffield.

Speaking on behalf of the management team, financial director Ian Swire said: “I am extremely proud to have been involved in the Amco success story for over 20 years.

“These are fantastic Yorkshire businesses and I am confident that they will all continue to thrive under their new ownerships”.

Neil Thompson said: “Having known Ian and the rest of the management team for many years and having acted for them in their MBO three years ago, it is very pleasing to see this matter through to such a good conclusion for all parties.

“As with the Amalgamated Construction sale, all advisers on the associated transactions were Yorkshire based.”

David Forrest added: “It was a pleasure to act for an outstanding management team on transactions which not only produce an excellent outcome for all parties but also provide a textbook example of how MBOs and private equity can be a force for good.”

David Hunt said: “I have worked with Ian and the Amco team for over 15 years and it is great to see this successful transaction completed, and for Lloyds to be able to support Drilling and Developments in the next stages of their evolution.”