Barclays support Mills CNC Limited with banking facilities to fund June MBO

Barclays support Mills CNC Limited (“Mills”) with banking facilities to fund a management buyout and continued growth plans.

Based in Leamington Spa, Warwickshire, Mills is the exclusive distributor of Doosan machine tools into the UK and Ireland.  Over recent years, the company has invested heavily in its service support to the specialist engineering sector to provide a full suite of services including turn-key design, warranty, breakdown and contract servicing, parts, finance and training.  The company has experienced fantastic growth in challenging conditions since the previous management buyout in 2008, with turnover now forecast to be in excess of £60m and growing.

A new senior management team has been promoted from within the company to ensure continuity.  The number of Board directors has been increased to reflect the greater management needs of the company as a result of its strong growth over the past few years.

The outgoing Directors have gifted a significant shareholding to an Employee Trust for the long term benefit of the company’s employees. The Trust will help support the retention and attraction of new staff with a long term incentive scheme linked to company performance.

Further investment in the company is planned, with new office space and extra staff to improve customer service, further grow the Training Academy and facilitate future growth.

Nick Frampton, former Managing Director, Mills CNC Limited said: “We have developed a close working relationship with Barclays over many years. They took a keen interest in our succession planning and were able to deliver a funding structure that worked for all parties.”

Paul Hooper-Keeley, Managing Director, Mills CNC Limited said: “We see Barclays as one of our key business partners and are appreciative of the support that we receive from Gareth Farbon and his team. This has been, and will continue to be, vitally important for the evolution and growth of our business.”

Gareth Farbon, Relationship Director, Corporate Banking at Barclays said: “This is an exciting new era for Mills CNC as they implement strategic plans for further sustainable growth. As a longstanding client we value the relationship and look forward to working closely with the new management team to provide the expertise and support they need to fulfill their strategy.”