A management buyout has created the largest manufacturer of a key building material.
The directors of Jablite, which manufactures expanded polystyrene (EPS) for the construction sector, including for insulation, and EPS packaging specialist Styropack announced on 27 April that they had completed the buyout.
The deal creates a new company that is the largest EPS manufacturer in the UK, with combined annual sales of more than £40 million and 140 employees across the UK.
Managing director and new joint owner Richard Lee said: “I never imagined as a 17-year-old starting work as a machine operator at Styropack in West Sussex I would eventually end up owning the business and its sister company 28 years later!”
A management buyout can offer an attractive option for a smooth transition of ownership to people who already know and understand the business, giving them the opportunity to assume control of the business where they may have worked for many years.
Nevertheless, such a transaction requires significant planning and attention to detail, and bringing on board legal advisors experienced in management buyouts at an early stage can help to ensure the deal proceeds smoothly, with potential problems addressed and constructive solutions found
Palmers can provide commercially-minded legal advice on all aspects of corporate transactions, including management buyouts, management buy-ins and other types of acquisition, mergers and disposals, along with assistance with corporate finance issues. For more information, please visit contact BJ Chong.