Mon, 20 Mar 2023 | MBO/MBI
Swann Systems (UK) Ltd, the parent company of Leicester-based CAPITAL Seating and AUTO-TRIM Systems, has undergone a successful management buyout. Following the deal, which was backed by FRP Corporate Finance and Santander UK, the firm will seek to continue the strong performance indicated by key financial ratios from its recent accounts.
CAPITAL Seating, established in 1968, is a well-regarded supplier of vehicle suspension seating and accessories, while AUTO-TRIM Systems provides vehicle upholstery services. Operating as an official distributor for leading seat brands such as Grammar, KAB, and Recaro, the company caters to a diverse range of sectors, serving trade and retail clients throughout the UK and Europe.
Recent financial analysis of the company highlights its robust liquidity position, demonstrated by a current ratio of 3.11 and a quick ratio of 2.27. Additionally, the company has a low debt-to-equity ratio of 0.145, suggesting financial stability.
The management buyout, led by Joe Beales, Darren Tuckley, and Melinda Tyack, will see the experienced team assume control of the business as part of its long-term succession strategy. Santander's financial support will also facilitate future growth and expansion.
The Swann family, who have been involved in the ownership and management of the company since its founding, will exit the business. Stephen Swann, the current managing director, will transition into a consultancy role, offering non-executive support to the new management team.
FRP Corporate Finance director Harry Walker commented: “For any business owner, formulating a viable succession plan is a key step in ensuring that the vision they have worked so hard to deliver is continued into the future."
“With this in mind, we’re glad to have been able to support CAPITAL with its management buyout and financing in anticipation of future growth. We’re excited to see where they go next and wish the Swann family, the management team and everyone at the company the very best.”
Outgoing managing director Stephen Swann said: "I am proud to be handing on the business to a management team that have worked alongside me and led the business for a number of years now. The company is in a great place for further growth and development in the future and this deal will provide a fantastic platform for the team to take it forwards."
“Fahim and Harry at FRP Corporate Finance exceeded our expectations in securing a range of attractive funding options for the buyout, whilst ensuring the deal was transacted smoothly for the benefit of all parties. We’re very thankful for their support and really appreciate the value that their involvement in the deal added.”
Read more about M&A in the UK automotive sector.
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