Swinburne Maddison LLP (Swinburne Maddison), Durham City’s pre-eminent law firm, and one of the leading law firms in the North East, has advised Teescraft Engineering Limited (Teescraft) on the acquisition of the entire issued share capital of LH (Quarry Plant) Limited for an undisclosed sum.
The deal, which also included the acquisition of Baxter Crushers Limited, as a wholly owned subsidiary of LH Quarry Plant, drew on the expertise of the corporate, commercial and employment teams at Swinburne Maddison.
LH Quarry Plant which is recognised as a market leader in the supply and manufacture of quarry plant equipment, was established in 1968. With a turnover of around £5m and approximately 40 staff, it supplies services, spare parts and consultancy to the quarrying, recycling, demolition and dredging industries in the UK, Europe, the Americas, South Africa and Asia from its base in Thornaby, Stockton-on-Tees.
The opportunity to acquire LH Quarry Plant came about because majority shareholders and brothers, Nick and Phil Caswell were looking to retire and wished to secure a buyer for the company, founded by their father, Laurie Caswell, who would build on its success to begin a new chapter.
David Green and Andrew Evans who have both worked at LH Quarry Plant for over 30 years and have been involved with the successful development of the company, will remain as part of the new management structure going forward. There will be no job losses as a result of the sale.
Teescraft, which currently operates from two sites in Bishop Auckland, two further sites in Stockton and a site in the Midlands, has built up an enviable reputation for its precision components for power-related applications, working to the highest levels of quality and operating within automotive, transmission, agricultural and oil-related industries throughout the world.
The acquisition of Quarry Plant will offer the potential for expansion and diversification plus the ability to take on larger contracts within its current areas of operation. With a policy to constantly invest in the latest technology to provide customers with the best quality products at competitive prices, Rob Yorke, managing director of Teescraft believes that the acquisition will complement and expand the firm’s current portfolio of companies. He said:
“LH Quarry Plant has a history of building on success to expand and diversify, meeting new industry challenges head on and investing heavily in the business over the years to improve efficiency and meet customer demand. We are keen to continue this journey and excited by the level of knowledge shared by our companies. We envisage a truly great future for the combined group.
“The team at Swinburne Maddison have done a tremendous job for us and have provided wise counsel at every stage of the transaction, which, with their help, has progressed very smoothly.”
The deal was led by partner, Martyn Tennant, head of corporate and commercial, who added: “We were particularly pleased to have been recommended to Teescraft to undertake this important and strategic acquisition.
“Not only did this deal give us scope to draw upon the wide range of expertise at our disposal, but it is a clear indication that experienced M&A services are available within County Durham.
“We hope that this transaction is only the first of many instructions we receive from Teescraft as it continues to expand and diversify its business and we wish them all success in the future.”
Gary Ellis and Angus Allan, partners at Clive Owen LLP, the regional firm of chartered accountants and business advisers, acted on behalf of Teescraft. Gary commented: “We were delighted to have assisted Rob and the team at Teescraft to add this strategic acquisition to the existing Group and, as valued clients of our practice, we wish Rob and the directors of LH (Quarry Plant) Limited well as they anticipate delivery of further growth as part of the enlarged group.”
BHP Law acted for the shareholders of LH Quarry Plant.