Multi-million pound Servosteel MBO del
A Dudley steel service business has been bought by its management in a multi-million pound deal backed by HSBC.
The price tag for the acquisition is not being revealed. Steelstrip Services - the former Essar Steel Processing & Distribution UK - has been bought by former Essar chief executive Phillip Guest and CFO Mark Anderson. The business name has been changed to Steelstrip Services, which will trade as Servosteel from its 197,000 sq ft Pensnett Road site in Dudley.
The business will be the UK's largest supplier of toll processing services to the strip mill products market. The new owners say the focus of the business will return to its roots, namely the servicing of its toll customers' hire-work.
Servosteel can trace its history back over 30 years and has a well-established customer base serving many sectors of the UK steel market. The company employs 75 people at its Pensnett Road site.
HSBC's Black Country and Shropshire Commercial Centre provided a multi-million funding package to support the acquisition, in a deal led on behalf of the bank by senior international commercial manager Gary Riley.
Servosteel executive director Mark Anderson said: "We are delighted to have been able to bring the company back into private ownership where we believe it can continue to prosper. Despite the fact that it has not been used for a number of years, the Servosteel name still resonates within the UK steel market and we intend to build on its excellent reputation.
"We would like to take this opportunity of thanking all our customers and suppliers for their support over the years and we look forward to working with them in the future."
HSBC Black Country and Shropshire area commercial director Kevin Skym added: "Phill and Mark are vastly experienced in this sector and enjoy excellent reputations; we are confident that they will be able to build on Servosteel's solid foundations and take the business from strength-to-strength."
