Stackright Building Systems Limited (SBS), a leading UK designer and manufacturer of steel anti-vandal accommodation, has been acquired in a circa £4.75 million deal by Midlands-based Metalrax Group Plc (Metalrax).
SBS, which has facilities in Walsall in the West Midlands and Kirkby, Merseyside, supplies a wide range of hire companies and end users.
A well established business with an excellent reputation for service and quality, SBS employs over 100 staff.
With circa 20 per cent of the UK market, the company’s product range includes; anti-vandal stores, secure accommodation (offices, medical rooms, drying rooms), secure toilets, complete multi story site compounds and custom containers (for housing generators, pumps, compressors) and telecommunications and utilities housings.
SBS underwent a management buy-out in 1999 led by the current shareholders Stephen Arthur – chairman and Nigel Dixon – managing director who will both be remaining with the business going forward.
Advising the vendors were Clearwater Corporate Finance in Birmingham led by partner Andy Moore with Martin Poole and Karen Edwards.
SBS chairman Stephen Arthur said; “This is an exciting step for SBS and we are looking forward to being part of Metalrax. Our focus will now be to further expand sales in the higher margin, lower volume special units we manufacture, whilst continuing our success in the high volume standard unit market.”
Originally established in the 1970’s, SBS has always been involved in the storage, manufacture and repair of containers and anti vandal accommodation. Since the MBO the business has demonstrated significant growth in both turnover and profitability. New products have been introduced, the customer base developed and SBS has entered new markets.
Its second manufacturing facility opened in March 2004 at Walsall in the West Midlands to meet demand and to ensure the company’s ability to service its customers on a national basis. SBS also provides repairs and modifications through a team of mobile service engineers.
The UK’s prefabricated building market of which anti vandal accommodation represents circa 10 per cent is estimated to be in excess of £500 million.
Clearwater partner, Andy Moore added; “This is a market with great potential, due to the increased need for robust accommodation, storage and the need to replace timber accommodation with steel constructions. This acquisition is an excellent development for SBS which has a strong market position due to its quality of product and service and its national coverage. As part of Metalrax, we are confident that SBS will go from strength to strength.”
Legal advisors to the vendors were Cobbetts in Manchester with Gateley Wareing in Birmingham advising Metalrax.