Three managers at a North Yorkshire-based precision engineering company have decided to put their 40 years of service to good use by buying the company for an undisclosed sum.
Claro Precision Engineering has been sold to a team led by non-executive Martin Doxey who was previously CEO of the White Rose Consortium. The buy-out team included sales director Mike Lewis and production director Richard Wilson.
Doxey who becomes managing director following the completion of the deal, said this is an exciting time for the company. “Claro is a responsible company that has achieved many accolades for its work in supporting the medical, aerospace and communications industries. We plan to build on our reputation for quality work and to continue to invest in our people, equipment and community."
Lewis added that the company is in safe hands. "We have plans for further investment, and will continue to give customers the focused quality service for which Claro is renowned throughout the UK “ he said.
The company, which employs 45, supplies its products to the medical, aerospace, defence, subsea, automotive and instrumental industries producing a turnover of £3 million.
The business was established 25 years ago and was sold by Howard Chadwick MBE, Tim Godolphin and Sarah Chadwick.
Howard Chadwick; said: "We have worked hard to ensure a situation whereby the existing management team is strengthened enough to take the business forward. We have total confidence in them - they are all excellent and dedicated team, totally committed to Claro. I would also praise the property and corporate lawyers at Davidson Webber plc, whose drive, hard work and good humour throughout ensured that this deal was done on time and to budget."
The deal was funded by HSBC with the management team advised by chartered accountant Gambit & Elliott led by Richard Feltham its head of corporate finance. Feltham said this deal is an excellent example of succession planning in a family-owned business. "'The founder wanted to retire and this deal gives two of the senior members of management a stake in the future of the business and also brings in new abilities in the shape of Martin Doxey," he added. "At the same time it raises funds for investment in the future of the business."
The management team received legal advice from Denison Till.
The selling shareholders were advised by WBS Chartered Accountants and law firm Davidson Webber, with corporate lawyer Ross Clark and property lawyer Russell Davidson leading the legal advice from DW. Clark said the firm was appointed to act on the deal because it has worked on previous transactions with VVBS, who recommended it to Chadwick and Godolphin. "This deal featured good, experienced corporate lawyers all round who took a sensible commercial approach," he added. "Such attributes are fundamental to a deal proceeding quickly and smoothly."
