Irwin Mitchell Advises on Leengate Valves MBO

15th January 2014

HSBC and YFM Support Deal for Ambitious Firm Leading industrial valves wholesaler, Leengate Valves, has been acquired by its management team.

The Derbyshire-based firm supplies major re-sellers in the gas, water and industrial sectors and has been bought from German listed industrial gases and engineering group, Linde AG. Leengate Valves has an annual turnover of almost £7m and boasts one of the UK's most comprehensive ranges of industrial valves. It also provides specialist actuation and automation engineering services. Commenting on the successful completion of the transaction, Leengate managing director Steve Pickering said: "Having helped found Leengate Valves some 20 years ago, I am very proud that my team and I now have the opportunity to own the business we know so well. Having completed the buy-out we are now all looking forward to continuing to work closely with our suppliers and customers and building on our success. BHP Corporate Finance acted as lead advisor to the Leengate management team whilst funding for the deal was provided by YFM Equity Partners and HSBC. YFM Equity Partners' investment was led by Mary Broadhead, while HSBC's South Yorkshire commercial and invoice finance teams provided acquisition finance and working capital facilities. Don Gray, partner, said "I am delighted that we have been able to work with Steve and his team to secure this deal. This is in every way a classic MBO story - a successful business that was deemed non-core by its owners and an ambitious and talented management team that was keen to take it independent." Dean Gormley, Sheffield partner and head of Irwin Mitchell's Banking & Finance team in the North, provided legal advice to YFM and HSBC, with Simon Cuerden, advising on corporate aspects. Dean said: -This is an important deal for Leengate and I wish the management team all the best as they open an exciting new chapter in the company's development. This deal also growing confidence in the market as well as demonstrating appetite amongst lenders to support ambitious, well-run businesses.