MORE than 30 jobs have been safeguarded after a management buy-out was agreed for a specialist construction business.
Chris Hyde, the managing director of Newton Aycliffe-based JDP Contracting Services Ltd, has bought out the company for an undisclosed sum, in a move that will allow the roofline installation business to expand its operation into South Yorkshire and the East Midlands alongside additional services and product innovation.
The deal was completed with the help of North-East advisers Tait Walker Corporate Finance, UK Steel Enterprise and HSBC.
Leading the deal from the Tait Walker Corporate Finance team were Steve Plaskitt and Adrienne Paterson..
Tait Walker also acted as introducers to and secured support from UK Steel Enterprise, the Tata Steel business-support subsidiary, with working capital secured from HSBC.
Tait Walker’s Steve Plaskitt said: “It is great to see a manager have the opportunity to buy his business and I was delighted to be able to source the funding to enable Chris to fulfil his ambitions. The construction sector in the UK is continuing to rebuild itself and I believe UK Steel will be a great supporter that will allow JDP to expand, create jobs and enter new markets.”
Sarah Thorpe of UK Steel Enterprise said: “It is a sign of our confidence in the company, its management team and its advisers that we have made a significant equity investment to back this management buyout. Our remit is to support businesses with the potential to grow and create jobs and we are sure that JDP is looking ahead to a strong and successful future.”
Mr Hyde said: “This is an exciting and positive move for the company as we look to expand into new areas and build on our existing strong reputation.
“Tait Walker provided us with valuable help from start to finish and, alongside both UK Steel Enterprise and HSBC’s expertise, facilitated the management buyout with minimal disturbance to the wider business.
“We have a healthy pipeline and customer base at present and, as the construction sector steadily continues to regain confidence, we are really positive about what the future holds for the business.”
Having recently entered its 20th year in business, JDP installs rooflines and employs more than 30 North-East workers. The company has an established customer base, spanning a number of councils, registered providers and contractors across the region.
Alison Routledge of HSBC said: “We were delighted to be able to support the JDP deal with working capital and we look forward to working with Chris as the company moves forward."
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