A pipework fabricator based in Norfolk and Essex has been bought out by two of its directors.
Pruce Newman was acquired by operations directors Darren Razzell and Jamie Key - who have been with the company for 23 years - thanks to a £2.4m funding package from lenders Independent Growth Finance (IGF).
Former majority owners Alan Pruce and Graham Newman have now passed on the specialist business to the pair following the management buyout (MBO).
The succession means the company - based at Wymondham with a satellite site at Hornchurch in Essex - is in the hands of a new generation, ensuring its continuity, the owners say.
The company was founded in Essex more than 50 years ago, and has grown in size to become one of the South and East of England’s premier fabrication companies.
It employs more than 150 people across Norfolk and Essex and provides high-specification pipework for a wide range of customers.
Current managing director Alan Pruce - who has been with the business since 1987 and will remain following the buyout to guide the transition - welcomed IGF's help with the deal.
"They took the time to understand the business and were commercial in their structuring of the funding package that met our requirements, providing the flexibility that some mainstream lenders often can’t," he said.
"The relationship led approach by IGF was crucial in not only ensuring a smooth transaction - but in providing the confidence and funding needed to grow and develop the team moving forwards.”
The Asset-Based Lending (ABL) funding package not only supports the management buyout, but will also be used to provide working capital and support the business's growth plans under the new leadership team.
Jamie O’Neill, new business director at IGF, said: “We are pleased to have supported Pruce Newman and the team in executing this exciting transition.
"Working alongside strong business owners and management teams is the cornerstone of our underwrites and for Pruce Newman these fundamentals were clear, with a loyal customer base, strong culture and experienced and accomplished management team obvious from the start. We look forward to working alongside Alan, Darren and Jamie to deliver their future growth plans.”
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