Yorkshire law firm Gordons advises Corrosion Resistant Products on MBO
Thursday 12th May 2011
A team from Yorkshire law firm Gordons has advised on the management buy-out (MBO) of Corrosion Resistant Products (CRP).
CRP, based in Littleborough near Rochdale, is the UK’s only manufacturer of specialist Teflon® lined pipe, fittings, valves and sampling systems for the chemical and pharmaceutical industries.
The MBO, which involves reinvestment by the existing shareholders of CRP into a new holding company, facilitates the retirement of three members of CRP’s senior management team.
The transaction was negotiated on behalf of CRP’s managing director Nigel Price by Jonathan Asquez, solicitor in Gordons’ corporate department. The remaining members of senior management were advised by Adrian Ballam at Schofield Sweeney, with Leeds based banking partner Mark Davies at Cobbetts providing advice to the incumbent lender Yorkshire Bank.
Nigel Price remains CRP’s managing director. Commenting on the deal, he said: “Throughout the purchase of the company I felt I was in safe hands and that Jonathan and his team had my best interests at heart.
“As a company, we felt it was time to move forward and bring in a younger management team with new ideas and enthusiasm. The buy-out provides a platform for expansion into further markets outside the UK and we are now having success in the United States and growth in mainland Europe.”
Gordons’ Jonathan Asquez said: “It was a real pleasure to work with such a forward-thinking and dynamic management team on this deal, which provides CRP with new opportunities and a strong grounding for the future which will be beneficial both to the company and its customers.”
Teflon® is a registered trademark of E.I. du Pont de Nemours and Company used under licence.