Leading scrap metal merchant agrees management buyout

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05/12/2017

A UK leading independent non-ferrous scrap metal merchant has completed a management buyout with support from Yorkshire Bank.

Preston-based, Tom Martin & Company, has been acquired by the existing senior management team as the previous majority shareholder and Finance Director, Sean Hallinan, retired from the business.

The buyout was supported by Yorkshire Bank’s award winning Corporate and Structured Finance team in Manchester, who provided a funding package which will be used to fund both the current transaction and support Tom Martin’s future aspirations.

Long-standing relationship

George Brettle, Tom Martin & Co’s Managing Director, said: “We have worked together as a management team for a number of years and will of course be sad to see Sean step down from the business. However, we are excited at the opportunity to deliver further growth for what is already a very successful business.

“Tom Martin has a long-standing relationship with Yorkshire Bank and we value their continued support on this and previous transactions. It was a very positive experience working with their team on this process, which was aided by their knowledge and understanding of our business and the sector we operate in.”

Established in 1948, Tom Martin operates from two UK sites in Preston and Manchester and has a third site in Poland. The business handles thousands of tonnes of metal a year, providing a tailored service in the processing of metals purchased from a sophisticated supplier base for use in a range of industries.

Craig Cheetham, Senior Director, Corporate and Structured Finance, at Yorkshire Bank, said: “We have worked with Tom Martin for 15 years, we have developed an excellent relationship with the business, having now supported them through three management buyouts, and we look forward to supporting the senior management team in the next phase of its development.”

A great position for future growth

Tom Barnwell, Director at Clearwater International, said: “We are delighted to have advised the management team on the transaction. This is the third time Clearwater International has advised an existing Tom Martin management team through a management buyout, which demonstrates the strength of the business and its attractiveness to funders. With the continued support of Yorkshire Bank, George and the team are in a great position for future growth.”

Tom Martin & Co’s management team were advised on the transaction by Partner, Michael Reeves, Director, Tom Barnwell, and Associate, Zack Goddard, of Clearwater International with Pinsent Masons acting as the management team’s legal advisers. Sean Hallinan was advised by Brabners.