Chemical distribution firm undergoes HSBC-backed MBO
Tue, 12 Mar 2024 | MBO/MBI
A chemical distribution firm based in Liverpool has undergone a management buyout (MBO) supported by a £16 million HSBC UK funding facility. Meade-King, Robinson & Co Ltd (MKR), which employs more than 50 UK staff and can trace its roots back to the 1800s, supplies and distributes a wide range of chemicals and oils.
During the year ending March 31 2023, the company reported turnover of close to £109 million, up from £83 million a year earlier, while pre-tax profits rose from £8.4 million to £11.8 million. In their report, the directors said that they were “extremely pleased with the trading performance of the group” which they said “was achieved during a period of considerable supply chain disruption and significant upward movement in raw material price levels.”
The funding from HSBC UK has helped current 25 per cent shareholders, Philip and Emma Tarleton to acquire the remaining 75 per cent of shares in the business via an MBO. The funding will also enable the business to accelerate its future growth plans following the MBO, via an expansion of its supplier base and current product portfolio.
HSBC UK Relationship Manager Mark Rowan said that the bank was seeking to build on its current relationship with MKR and help “to grow the business further for the benefit of its valued clients and management team.”
MKR Managing Director Philip Tarleton commented: “The ownership transition will enable us to be better prepared and positioned for future growth. In addition, we look forward to continuing to enhance our reputation as a key partner to many of the world’s largest chemical companies. We thank HSBC UK for its continued support throughout this management buyout process.”
MKR received advice and assistance from business advisory firm Moore & Smalley throughout the MBO process, with legal advice provided by a team at Weightmans’ Liverpool office.
Find out why MBOs are an increasingly popular exit strategy for business owners
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