A management buyout has been agreed at Sheffield-based Mechan, which manufactures specialist lifting equipment for heavy industrial and transport companies.
Mechan, which has been in business since 1969, designs, fabricates and installs cranes and other heavy-lifting gear for
Mechan’s business development director Richard Carr, who becomes managing director following completion of the deal, headed the management buyout team. He is an equal shareholder with financial director Zahir Altaf, sales dir ector
‘We had been in discussion since January with founder and major shareholder Tony Hague, who decided to sell some while ago,’ Richard Carr said. ‘So we were pleased to tie up an agreement that will enable Mechan to maintain the growth achieved over the past four decades.
Hague retains a minority holding and the role of chairman.
‘The buyout team is very confident about future prospects, particularly as export markets now provide extensive sales opportunities. We are also benefiting from increased investment in new rolling stock and maintenance depots in the UK, for which Mechan lifting jacks and other equipment are often specified.’
South Yorkshire Investment Fund provided funding for the buyout, alongside personal investment from members of the buyout team and ongoing banking arrangements with NatWest. The value of the buyout has not been disclosed.
Mechan will operate from its current premises until 2009, after which management envisages relocation to a new facility.