We’re delighted to share that our Corporate Finance Lead Advisory team has successfully supported S&S Steelstock in completing a significant acquisition that will double the company’s revenues and expand its manufacturing capabilities.
The complex transaction saw S&S Steelstock, led by Directors Barry Collins, Chris Downs and Jon Elwell, acquire Trident Sections in Kingswinford as part of ambitious growth plans that will create several new roles in the region.
This deal brought together two well-established Black Country businesses with more than 60 years of combined industrial heritage. S&S Steelstock has a long-standing background in supplying products to the auto supply chain, and this acquisition gives them the opportunity to capitalise on Trident Section’s expertise in specialist narrow slitting, whilst also expanding into galvanised steel capping and channel works – predominantly for the electrical wholesale market.
A multi-faceted approach
The deal required expertise from across our business. Eight specialists from our North West and Midlands offices came together to deliver the purchase within a relatively short timeframe, positioning the enlarged business to make the most of opportunities in the automotive, construction and electrical sectors.
Our Head of Commercial Funding Solutions, David Wright, secured a seven-figure funding package from HSBC UK – a combination of cash flow loan, commercial mortgage and invoice financing facility. We also utilised our in-house VAT specialists to ensure every aspect of the transaction was handled smoothly.
Lewis Pearson, our Corporate Finance Director who led the transaction, commented: “The two firms share similar manufacturing values of quality and delivery performance, and this deal creates efficiencies of scale and the ability to bolster complementary capabilities to the S&S offer.
“Importantly, the two businesses will now both be operational from the 15,000 sq ft manufacturing facility in Kingswinford, creating immediate additional capacity and helping to reduce lead times to customers.”
A long-standing partnership
S&S Steelstock, which supplies mild steel coil, plate and sheared blanks, has been a client of our Bury office for more than twenty years. When they approached Director Richard Bell to support the business with the potential acquisition of Trident Sections, we were able to leverage our full range of expertise.
Lewis continued: “The acquisition highlights the wide range of expertise and specialisms we can bring to the table, whilst keeping everything in-house definitely accelerated the process and completion date. We’re seeing a spike in interest from clients looking for a professional services provider that can look after most of the deal from start to finish.”
Chris Downs, Director of S&S Steelstock, added: “We are passionate about UK manufacturing and the opportunity to bring Trident Sections into the family represented a perfect fit that will hopefully lead to growth and new jobs.
“DJH has been a superb partner on the deal. It meant we could use one specialist for 99% of the transaction and this allowed us to focus on everyday business activities, whilst the purchase was being formulated and completed. Despite all the complexities, it has been a relatively smooth process!”
Strong partnerships deliver results
We worked extremely closely with Luke Pritchard and Sophie Knapper at Knights on the legal elements of the deal, demonstrating how collaborative partnerships drive successful outcomes.
Melissa Orpe, Area Director for HSBC UK, commented: “In completing this acquisition, S&S Steelstock is acting on a clear opportunity and securing the future of valuable manufacturing jobs in the heart of the Black Country. When the business case was made to us, it became apparent that this move adds supply chain stability to the sector, whilst opening further growth opportunities for the business.”
Luke Pritchard, Corporate Partner at Knights, concluded: “Every successful transaction relies on strong partnerships. DJH led the financial strategy, whilst we ensured the legal framework was watertight, incorporating advice from our corporate, real estate, banking, tax and employment teams. We were delighted to advise the buyers and are excited to see how the business develops under the leadership of Barry, Chris and Jon.”
