M&A Advisory

SF Limited (SFL)

Adviser to Stamm International Corporation (SIC) on the sale of its subsidiary company SF Limited (SFL).

The deal

Specialist UK chimney and flue manufacturer acquired by European group

We are pleased to have advised Stamm International Corporation (SIC) on the sale of its subsidiary company SF Limited (SFL), a leading manufacturer of chimneys and flues in the UK, to Sphering Group, a European manufacturer of chimney and ventilation systems.

Based in Devon, SFL designs and manufactures residential and commercial chimneys and flue systems. The company was founded more than 50 years ago and has expanded its reach across the US, Europe and Asia.

The business was acquired by SIC – a US-headquartered manufacturer of heating, ventilation and air conditioning equipment – in 2003 and the deal represents an exit for SIC from the business.

Sphering Group supplies flue and ventilation systems to the residential, commercial, and industrial markets across France, Italy, Belgium, Germany, Poland and now the UK. Following this deal, the group now employs 800 people and has added a sixth manufacturing plant to expand its industrial capacity and increase its presence globally.

As part of the deal, SFL will maintain its base in the UK and all 80 employees will remain with the company.

SIC appointed our team at FRP Corporate Finance as lead corporate finance advisers. The team, which was led by Partner Simon Davies and supported by Senior Manager Ben Lowe and Manager Nick Wright, worked efficiently to gain an understanding of the business, and review a range of buyers.

Simon Davies, Partner at FRP Corporate Finance, said: “SFL has been a mainstay in the UK manufacturing industry for more than half a century, and the team has a well-earned reputation for its entrepreneurial culture and quality customer service. Sphering shares SFL’s customer-centric values and, combined, the group is in a great position to expand its international presence. It just goes to show that there remains considerable investment appetite for UK manufacturing businesses that have a strong proposition and skilled leadership teams. We have a longstanding relationship with SIC, and we are thrilled to have supported them in securing the perfect partner for SFL’s next growth chapter.”

Marilyn Skony Stamm, president and CEO at Stamm International Corporation, said: “FRP Corporate Finance played a critical role in every stage of the transaction. They became an integral part of SIC’s internal transaction team, working closely with both SIC senior executives and the local senior management team. They were instrumental in the ongoing negotiations and moving the process forward. And most importantly, the team took the time to fully understand and immerse themselves in the business in order to represent it knowledgeably. They are a class act, and it was a pleasure to work with them.”

Deal summary

Date:

November 2022

Sector:

Manufacturing

Deal type:

Selling a business

Deal size:

Undisclosed

There remains considerable investment appetite for UK manufacturing businesses that have a strong proposition and skilled leadership teams. Simon Davies Corporate Finance

Related team

Simon Davies

Simon Davies

  • Partner
  • Corporate Finance
  • Reading, London West End

Ben Lowe

Ben Lowe

  • Senior Manager
  • Corporate Finance
  • London West End

Nick Wright

Nick Wright

  • Manager
  • Corporate Finance
  • London West End