YFM in £4m Ferrabyrne MBO

The deal marks the second investment from YFM's maiden institutionally backed fund, which held a first close in June on £22m. A number of VCT fund managers are understood to be raising institutional funds in response to recent rule changes, which prevent VCTs from making buyout investments.

Private investors also took part in the transaction, following which the company will continue to be led by its current managing director Ken Horton and non-executive chairperson Peter Pollock.

Ferrabyrne will look to capitalise on the increasing investment in UK rail infrastructure. The UK has recently embarked on a number of high profile projects, including London’s Crossrail and the High Speed 2 rail link between London and the north of England.

Company
Founded in 1970 and headquartered in Littlehampton, West Sussex, Ferrabyrne manufactures rubber and metal components for use in trains, commercial vehicles and in the energy generation sector. Its customers include Bombardier, Hitachi, Alstom, Siemens, CAF, Wabtec, Unipart Rail and London Underground.

The company has a headcount of 73 and generated a turnover of £9.6m in 2015 with profit before tax of £915,000, according to publicly available records.

People
YFM Equity Partners – Nigel Owens (investment director).

Advisers
Company – Meta Corporate Finance, Mark Ledger-Beadell, Abri Coetzee (corporate finance); Cripps, Salim Somjee (legal).
Equity – ASB Law, Andrew Hoad (legal); WK Corporate Finance, Dan Nixon (financial due diligence); Armstrong Transaction Services, Robin Illingworth (commercial due diligence); Stratton HR, Anna Cornwallis (management due diligence).

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• Topics
• Buyouts
• UK / Ireland
• Industrials
• United Kingdom
• YFM Group