Case Study: HS Pipequipment

Deal size:
Undisclosed
Transaction:
Management Buy-Out
Sector:
Mechanical and Engineering
Deal completed:
2004
hsp1
About the deal

Meridian Corporate Finance LLP (“Meridian”) advised Management on the £5m Buy-In Management Buy-Out (BIMBO) of Newbury based HS Pipequipment (“HSP”).

Formed in 1979 HSP (now known by HSP Valves) is the leading supplier of valves, predominantly in the oil, gas and petrochemical markets With operating sites in Newbury, Teeside and Aberdeen. 

The deal was structured, negotiated and project managed by Meridian.

The deal was financed by Steve Lovell of Barclays Bank in Reading on the back of significant new orders for oil fields in Kazakhstan, Russia and the Forties Fields in the North Sea.

Michael Barcia, Meridian Partner adds, “HSP has experienced a real step change in their business. We are building on their management team with the appointment of Peter Everett previously of Baker Hughes Inc, and management have an excellent opportunity to continue their growth over the next few years. Structuring the deal through debt means that the three key members of the management team have retained all the equity between them, with Barclays doing anexcellent job at structuring the transaction in an effective and commercial manner”.

Summarising, Steve Draper, Managing Director of HSP commented, “We have greatly enjoyed working with Meridian, who have played an integral role in managing this process and look forward to the next stage in our relationship with Barclays Bank”.

1979

Formed in

hsp2

We have greatly enjoyed working with Meridian, who have played an integral role in managing this process and look forward to the next stage in our relationship with Barclays Bank.

Steve Draper , HS Pipequipment