MD Law has advised on the management buy out of an established Sheffield-based ironmongers.
Company and commercial partner James Burdekin lead the transaction for Sheffix, which has been acquired by Brad Wheeler, who started at the firm on Shoreham Street, as a school leaver 20 years ago and has run the business for the past four years.
Sheffix, which supplies trade clients nationwide, is targeting growth following the buyout supported by funding from the Northern Powerhouse Investment Fund II (NPIF II).
The deal was backed by a £300,000 loan from NPIF II – Mercia Debt Finance, which is managed by Mercia Business Loans as part of NPIF II.
The buyout provides an exit for Norman and Elaine Pearce, who founded the business in 1984 selling ironmongery and hardware to mainly domestic customers.
Over the past decade, Wheeler has led a sales drive to expand the number of trade clients and the company now sells to joiners, builders and fire door specialists across the country.
Sheffix, which currently employs five staff, has almost doubled its turnover in the past three years.
Following the buyout, Wheeler plans to continue growing the customer base, expand its product range and introduce locksmith services for local clients. He is also aiming to create two to three jobs in the next three years.
Brad Wheeler, managing director at Sheffix, said: “A small business has to offer something different if it is to compete with the big players. At Sheffix, it is our service and knowledge that set us apart. Clients know they can pick up the phone to us at any time and we will select the right products and quickly despatch them.
“The buyout is a really proud moment for me and my family. I’ve always treated the business as if it were my own in terms of my growth ambitions, but being the business owner is an added incentive to take it forward.”
James Burdekin said: “MD Law is very proud to support another local business and the sale to Brad, who has been a part of its progress over the past 20 years. We hope to see Sheffix continue to develop and support its growth moving forward. It is also pleasing to be involved in another deal with more local professionals and lenders and long may this continue.”
Ian Whitworth, of Mercia Business Loans, added: “Brad’s enthusiasm has helped to transform Sheffix from a ‘corner shop’ business into a national supplier. We are pleased to help him take ownership of the business and pursue his expansion plans.”
Sarah Newbould, senior investment manager at the British Business Bank, said: “The Northern Powerhouse Investment Fund II is helping ambitious businesses like Sheffix to achieve their growth plans, and it’s fantastic to see Brad building on the company’s strong foundations. Through investments like this, we’re helping businesses pursue new opportunities, create jobs and contribute to sustainable economic growth across the North.”
Chris Mangle of Custom Business Finance provided fundraising advice to the company. James Burdekin, partner at MD Law in Sheffield, provided legal advice to Sheffix while accountancy firm Brearley and Co was corporate finance adviser.
Are you looking to acquire a business through a MBO? Contact James Burdekin at MD Law on 0114 299 4890 for further information or click here.
