Flamerite Fires Ltd, a leading designer, assembler and manufacturer of high-end electrical fires, stoves and suites has been acquired in a multi-million-pound management buyout (MBO). The company has been acquired in a transaction advised on by David Kaplan of Nelsons and Jenny Moore of Dains Corporate Finance, with funding provided by Allied Irish Bank (GB).
Flamerite, which is based in Lichfield, has been acquired by existing Director John Watts from his brother David Watts, who will move into the role of Chairman following the transaction. The MBO follows another record-breaking year for the company.
Managing Director John Watts said:
“I am very excited about Flamerite’s future and I am looking forward to taking the company forward. There are a lot of exciting plans in the pipeline which will aid the future growth of the company and expand the current product offering.”
“The teams at Dains and Nelsons provided exceptional advice and were there for every step of the transaction, explaining every aspect as we went along. Their experience and expertise in the fundraising and deal process supported and guided me and ensured that there was a swift and successful completion of the transaction.“
David Kaplan, Partner in Nelsons’ Corporate services team, commented:
“Flamerite have been a long standing client of Nelsons and I have been fortunate enough to work with David and John for a number of years. We explored a number of exit options for both David and John and in conjunction with the advice provided by Dains it was decided that it would be best for John to buy out David. It was a pleasure working with John and I am sure that Flamerite will continue to grow and develop innovative products under his stewardship.”
Jenny Moore from Dains Corporate Finance in Derby added:
“It has been a delight to work with the John and his team on this transaction. Flamerite’s growth has been built on delivering high quality products to their customers and John is now in a great position to build on this for the future. The deal allows succession for David Watts, who will continue on in a Chairman role, passing over the Managing Director reigns to his brother John.”
Paul O’Reilly, Senior Relationship Manager at Allied Irish Bank (GB) in Birmingham, added:
“When introduced to John and his senior colleagues at Flamerite, I was immediately impressed with the quality and strength of the management team, which has succeeded in building a design-led manufacturing business with enormous potential. This, coupled with our in-depth understanding of the manufacturing sector, were two key factors in our decision to back Flamerite’s next steps to success.”
On handing over the company, David Watts concluded:
“I am absolutely thrilled to have been able to pass on the company to John in such a strong position. As Chair I will still be able to support John and the team strategically, however, I know they are more than capable of building on Flamerite’s success from here. Over the past 19 years, I have enjoyed the challenge of creating and directing a business with John which has made such a difference to the whole industry. I am now ready to enjoy more leisure time, and possibly some fresh challenges, in retirement!”
John Watts was advised by David Kaplan of Nelsons and David Watts was advised by Flint Bishop Solicitors. Transaction advice was provided by Jenny Moore of Dains Corporate Finance and tax advice by Adam Longmore of Dains LLP. Funding was provided by Paul O’Reilly of Allied Irish Bank (GB).