‘We are excited to have the opportunity to help grow the business further’
A Gateshead contractor which has been trading for almost 50 years has been acquired in a corporate deal backed by a significant seven-figure investment. Ryton based Debmat Surfacing Limited (Debmat) was established in 1979 as a surfacing contractor and civil engineering business.
It provides domestic and commercial surfacing and civil engineering solutions to a wide range of sectors including construction, commercial, retail, and education, Now the firm has been acquired in a Buy In Management Buy Out (BIMBO) – a deal in which both existing and outside managers buy and take control of the firm – supported by a seven-figure investment from NPIF II – NEL Debt Finance, managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II).
The investment will also support Debmat’s next stage of growth as the new leadership team plans to introduce complementary services, including remediation activities, in response to client demand. New jobs are expected to be created on the back of the new business streams.
The incoming ownership team includes Debmat’s existing co-managing director, John Turner; Nick Shilling, former managing director of demolition contractor Thompson’s of Prudhoe; and Ian Wilkin, a chartered accountant and former CFO and COO of a New York-based real estate private equity firm.
Mr Turner, who has more than 32 years of sector experience and a strong track record of growing the business, will move from managing director to chairman.
The management team has also been strengthened with Martin Barker as managing director and Ben Harris as commercial director.
Mr Shilling worked at Thompson’s of Prudhoe from the age of 16 and went on to become managing director. He led the company during a period of significant growth, with the company also recognised as Contractor of the Year at the World Demolition Awards under his leadership.
Before selecting Debmat, Mr Shilling and Mr Wilkin reviewed more than 25 acquisition opportunities. They have known each other since college and have worked together on multiple projects over the years, and say this marks an opportunity to work more closely together.
Mr Shilling said: “We are thrilled to be joining forces with John and his outstanding team at Debmat. We are excited to have the opportunity to help grow the business further, exploring new complimentary service lines and expanding into new geographies with clients who see Debmat as a trusted partner. We are grateful for the support of the whole Debmat team, as well as the advisors and partners who have supported us in making this opportunity a reality.
“The NEL team and our legal and advisory partners provided fantastic support at all stages of the transaction, confirming that we chose the right partners to join us in this transaction. We look forward to continuing our relationship with them as we grow.”
Rachael Munro, Investment Executive at NEL added: “Debmat is a fantastic business with a strong reputation, a skilled team and real momentum for the future. We are delighted to support this next chapter and back an experienced leadership team with ambitious plans to build on the company’s success and create further opportunities for growth. It was a pleasure to work alongside all of the advisers involved, and the collaborative approach throughout the process was instrumental in ensuring a smooth and successful transaction.”
The legal side of the transaction was supported by Hill Dickinson LLP acting for Debmat, Muckle LLP acting for NEL, and Swinburne Maddison acting for the sellers.
Sarah Newbould, senior investment manager at the British Business Bank said: “Through the Northern Powerhouse Investment Fund II we are proud to be backing engineering and infrastructure businesses like Debmat Surfacing that sit at the heart of the UK’s Modern Industrial Strategy. Investments like these are key to helping strengthen regional construction and civil engineering capacity, create highly-skilled jobs and drive long-term economic growth across the North.”
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