Wolverhampton-based D&J Steels has undergone a re-financing as it continues to expand. The company is the largest steel stockholder to the UK forging industry and the move is on the back of two recent acquisitions.
The deal was initiated by Andy Kay, corporate finance director in the Midlands office of national audit, tax and advisory firm Crowe Clark Whitehill and structured by Chris Jones, managing director of Select Business Finance, a specialist Asset Based Lending advisory firm, with offices in Wolverhampton and Shrewsbury.
After thoroughly reviewing the options available to the company, Chris engaged Jonathan Myerscough and Mike Middleton of LloydsTSB to put together an Invoice Discounting facility and a commercial mortgage for the business. D&J Steels has a turnover in the region of £10 million and employs 20 people.
Run since 2008 by directors Chris Hutton-Penman and Peter Davies, the company has over 38 years of experience serving the forging, engineering and oil and gas sectors. There have been two significant acquisitions – Kingswinford-based Midsteel Bars from the Midsteel Group, in 2009 and Oldbury firm Woodsetton Steels last year. Both have since been integrated into the group, moving to Wolverhampton.
Mr Hutton-Penman, chairman, said: “We are looking to grow and this refinancing is part of our plans going forward.
“The two acquisitions have settled in nicely and the enlarged group is performing well. We used Crowe Clark Whitehill on each occasion. These are difficult economic times and having this financial package in place will mean we are even more robust and able to take advantage of what opportunities may present themselves.”
Mr Kay said: “D&J Steels is an excellent business and I was aware they were looking to further develop their banking arrangements.
“We are particularly pleased that we were able to help.”
Mr Jones said: “This is a good example of Black Country industrialists and professionals collaborating for the betterment of the region’s economy.
“It is now widely recognised that manufacturing has to be at the heart of the nation’s future if we are to trade out of these difficult times. The directors of D&J Steels are forward thinking individuals, viewing the future with confidence and looking to further develop their business.”
Lloyds TSB said it was pleased to have been able to put the financial package together. It stated: “We are seeking to back good Midlands manufacturers who continue to be the bedrock of the region. D&J Steels is an excellent operation and we look forward to a long and productive relationship with them.”
D&J Steels services the whole of the UK and Ireland from its Wolverhampton base.