Building Services Co Expands with £3m Backing

7th September 2005

A Merseyside building services company is expanding after a management buy-out (MBO) funded by Merseyside Special Investment Fund (MSIF) and Bank of Scotland Corporate.

White Building Services has a trading history dating back to 1925 and provides a wide range of client focused services in construction, property maintenance, planned and reactive maintenance and electrical and mechanical services. Clients in the publice sector include local authorities, the Fire and Police services, Daresbury Laboratories, housing associations, schools, universities, and health authorities while private clients cover retail, industrial and commercial sectors.

An investment package totalling £2.85m includes £1.1m from MSIF's Mezzanine and Venture Funds and £1.75m from Bank of Scotland Corporate.

The deal was led by Alastair Donald and Phillip Roscoe of Bank of Scotland Corporate, MSIF's Simon Thelwall Jones Investment Director of its £40m Venture Fund, Matt Allen, its Assistant Investment Director and Malcolm Jones, Investment Director of MSIF's £20m Mezzanine Fund.

Stewart Bonnette, formerly Commercial Director, now takes over the business as Managing Director. MSIF has recruited Brian Tock, a former Director of Tarmac (now Carrillion) to the company as a non-executive director.

Stewart Bonnette said: "White's has been operating since 1925 and established an impressive reputation in a competitive but fast growing marketplace. The investment means we are now in a position to expand rapidly and increase the range of services we provide. I am looking forward to leading the company through this exciting phase of development."

MSIF's Simon Thelwall-Jones said: "The management team is experienced with a proven track record and the business is operating in a high growth sector. Our investment will allow them to build on company's progress to date, take on more staff and broaden its customer base."

Alastair Donald of Bank of Scotland Corporate, added: "We are pleased to support a proven management team in taking White's to its next stage of development. This is a strong platform for growth and certainly reflects the type of dynamic company we are attracting to bank with us."

Around 350 staff are employed at premises in Newton-Le-Willows and the company has a turnover of £30m, a figure which is expected to rise in excess of £40m over the next three years. Management predict that around 100 new jobs will be created in the same timescale.

Legal advisors in the transaction were DLA acting for MSIF, Brabners Chaffe Street acting for management, and DWF acting for Bank of Scotland Corporate. David Houghton of Brabners Chaffe Street provided corporate finance advice. Due diligence was conducted by Grant Thornton.

Ends

For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040

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Pic 1 shows L-R Alastair Donald (Bank of Scotland Corporate), Malcolm Jones (MSIF), Ray Hardman (Whites), Stewart Bonnette (Whites), Matt Allen (MSIF), Simon Thelwall-Jones (MSIF), Phillip Roscoe (Bank of Scotland Corporate)

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