FRP Corporate Finance helps deliver MBO for leading fabricator

Norfolk-based fabrication specialist Pruce Newman has undergone a partial management buy-out, in a deal supported by FRP Corporate Finance.

The business’ management team, led by Darren Razzell and Jamie Key, has acquired a majority share in the company. The firms’ existing shareholders have retained a minority equity stake.

Pruce Newman, founded in 1970, is one of the South East and East of England’s leading fabrication businesses. Specialising in pipework and steelwork, the business delivers design, welding and maintenance services through a team of more than 100 people from bases in Norfolk and Essex.

FRP Corporate Finance’s team – led by Partner Jon Dodge, with the support of Directors Ryan Symonds and Matt Field – were engaged by Pruce Newman’s previous majority shareholders to review options for a structured succession plan that would both realise capital value and enable the business to continue on its strong growth trajectory.

FRP’s team designed the MBO structure and helped secure suitable debt and working capital facilities from IGF to finance the deal.

Additional legal support was provided by Howes Percival.

Alan Pruce, Managing Director at Pruce Newman, said: “We’re particularly grateful to Jon and his team for sharing their experience of MBOs to help us navigate the process. They’ve shown huge skill and sensitivity to the interests of all involved, and it’s thanks to their steady guidance that this deal has been made possible.”

Graham Newman, Director at Pruce Newman, added: “We had engaged with FRP to help deliver a previous successful shareholding restructure and once again their invaluable support, expertise and guidance enabled our latest, more extensive, restructuring project to be realised, with the minimum of obstacles.

“The deal that they helped us accomplish has enabled the existing majority shareholders to realise our capital value, whilst allowing the new majority shareholders to inherit a financially stable business that is set to deliver further growth and security for all of its employees, who have worked so hard to develop the business over the past half century.”

Jon Dodge, partner at FRP Corporate Finance, said: “It’s been a pleasure working with Pruce Newman’s shareholders on this MBO. This outcome reflects the value and quality both the shareholders and management team have built over the years. The business has an exciting future ahead, and we wish all involved the very best moving forward.”