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News Release from: DavyMarkham
Edited by the Manufacturingtalk Editorial
Team on 20 July 2007
Heavy machine shop firm undergoes MBO
The UK's one of a few remaining heavy duty machine shops and fabrication plants, which recently machined a 600 tonnes casting, has undergone a management buy-out.
Located in Sheffield, UK, the DavyMarkham heavy machining, engineering and fabrication plant has undergone a management buyout (MBO) with the help of Endless, a Yorkshire located business buyout and turnaround fund company The investment is seen as supporting DavyMarkham's business turnaround and will enable the company to re-establish itself as a leading operation in the world's heavy engineering market
This article was originally published on Manufacturingtalk on 10 Jul 2008 at 8.00am (UK)
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Kevin Parkin and Duncan Hay, who have been acting respectively as interim managing director and interim financial director, now take permanent positions on the DavyMarkham board.
Parkin commented: "DavyMarkham has been through a significant turnaround over the last 18 months and we have been supported all the way by our skilled and dedicated workforce".
"The investment and strategic support from Endless will allow the business to grow from strength to strength".
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"This is great news for both the employees of Davy Markham and South Yorkshire in general, and Duncan and I are pleased to be part of it." In the closing years of the 20th century, and afterwards, the original pre-amalgamation companies of DavyMarkam (such as Davy McKee, Sheffield and Markam in Chesterfield) were involved in the Thames Barrier, the Channel Tunnel (tunnel boring machines), the Millennium Bridge and Heathrow's Terminal Five.
The former Davy Group had, for example, two rolling mill companies building a wide range of plant from aluminium foil mills to some of the world's largest wide steel plate mills.
Davy and Markham have a strong South Yorkshire history since the 1830s before a merger in 1997.
Today, DavyMarkham works closely with Sheffield Forgemasters and Siemens VAI - retaining a global heavy engineering expertise in South Yorkshire.
In Sheffield, DavyMarkham has an annual turnover of GBP 14 million- and employs 170 people.
The company plans to recruit more skilled staff and invest in a new apprenticeship scheme.
Endless is in the early stages of plans to complement its investment, injecting additional funding into the DavyMarkham site by developing a new industrial park, a further boost to the Sheffield area.
Christopher Clegg, investment director at Endless, who led the deal, commented: "We are delighted to back such a talented management team in Kevin and Duncan and a workforce which has shown real commitment in a difficult phase for the company.
DavyMarkham represents a huge opportunity with demand for heavy engineering excellence growing by the day.
This investment highlights our commitment to South Yorkshire and to traditional industries that often find raising finance difficult." Ingram Forrest and Addleshaw Goddard advised Endless and Nabarro advised magement.
The Bank of Scotland provided banking facilities.
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