Eurosource Ltd - A Second Curve
New energy. New leadership.
*extract taken from Wales News Online*
"A company that supplies pipeline equipment to the World's oil, gas and petrochemical industries is planning a major expansion following a management buyout.
The Wales Co-Operative Centre brokered the buyout deal worth more than half a million pounds for Eurosource, the Aberbargoed-based supplier of pipe, fittings, flanges and valves to the oil, gas and energy sectors.
The deal was corner-stoned by a £300,000 equity and loan investment from Tata Steel subsidiary UK Steel Enterprise, with the company's existing backers Finance Wales contributing an additional £140,000 loan to the deal.
The five person management buyout team was led by Karl Williams, the managing director. Each member of the team made a substantial personal investment to purchase the shares from former shareholder, Gary Williams, Chairman.
The buyout was brokered by Paul Cantrill from the Wales Co-operative Centre's business succession team. It will ensure the new management team can continue to develop and grow the business, which employs around 25 people in the Aberbargoed area and also has overseas offices.
The new team said it hopes to be able to move towards a wider employee ownership approach as the business develops.
Karl Williams said "The investment from UK Steel and support from Paul Cantrill of the Wales Co-Operative Centre has been invaluable in the buyout process. A second curve has begun and exciting times are ahead for all concerned at Eurosource Ltd."
Glyn Thomas, investment executive with UK Steel Enterprise in Wales, added: "We are delighted to support this deal to take Eurosource forward under its new management team. UK Steel Enterprise aims to help support Welsh companies with aspirations to grow and create local jobs, and we are sure Eurosource will do both these things. We wish them all success with their expansion plans."
Paul Cantrill is a business adviser for the Social Business Wales project which is run by the Wales Co-operative Centre and funded by the European Regional Development through the Welsh Government.
He said: "I am very pleased for the new team leading Eurosource. They will consolidate Eurosource as an important supplier to the engineering and energy sectors. The accompanying investment from UK Steel Enterprise will further strengthen the company's position and management."
Finance Wales' loan enabled one of the new management team to participate in the buyout.
Portfolio executive Steve Elias, who led the deal for Finance Wales, added: "We've backed Eurosource for nine years through an exciting period of growth and we're delighted our loan has helped to facilitate this management buyout.
The company has some ambitious expansion plans and we look forward to working with Eurosource on the next part of its growth journey."
The deal and investment was supported by Chris Inson of Capital Law who provided legal advice and services to the management buyout team.
The departing majority shareholder, Gary Williams, was advised by Seamus Gates of Broomfield Alexander.
Wales Co-Operative Centre supported the management buy-out process with funding secured from the European Regional Development Fund and Welsh Government."
Eurosource and the team would like to congratulate Toby Richards, Steve Lee and Lee Petty on their recent directorship and we look forward to working together with a new energy and leadership.