Directors take over heavy engineer

Endless has backed the management buyout led by Kevin Parkin and Duncan Hay, who have been acting managing director and financial director respectively at Sheffield-based DavyMarkham.

The pair, who were brought in to run the company 18 months ago after it experienced a downturn in trading, have taken permanent positions on the board following the buyout.

The £14m turnover company, which employs 170 people, aims to recruit more staff and launch an apprenticeship scheme to develop skill levels.

Endless, which has invested an undisclosed sum, is also set to inject additional funding into the DavyMarkham site by developing a new industrial park.

DavyMarkham was established in 1997 after engineering firms Davy and Markham, which can both trace their histories to the 19th century, merged. The company designs, manufactures and machines structures and components, weighing up to 350 tonnes, used in sectors including mining and metals, nuclear, hydro-power, water systems and general engineering. The combined group has supplied large infrastructure products to projects including the Thames Flood Barrier, the Channel Tunnel boring machine, the Millennium Bridge in London and Heathrow's Terminal Five Control Tower.

Christopher Clegg, investment director at Leeds-based Endless, who led the deal, said prior to Mr Parkin and Mr Hay's involvement, DavyMarkham had a "lack of direction".

 

Mr Clegg said: "We are delighted to back such a talented management team in Kevin and Duncan and a workforce which has shown real commitment in a difficult phase for the company. They've got a robust plan to take the business forward; our input will very much be strategic. DavyMarkham represents a huge opportunity with demand for heavy engineering excellence growing by the day. This investment highlights our commitment to South Yorkshire and to traditional industries that often find raising finance difficult."

Mr Parkin said: "DavyMarkham has been through a significant turnaround over the last 18 months and we have been supported all the way by our skilled and dedicated workforce. The investment and strategic support from Endless will allow the business to grow from strength to strength. This is great news for both the employees of DavyMarkham and South Yorkshire in general, and Duncan and I are pleased to be part of it."

DavyMarkham works closely with its neighbours Sheffield Forgemasters and Siemens VAI.

Last month Sheffield Forgemasters produced a 325-tonne casting for a press in South Korea. The main casting is undergoing finishing work at DavyMarkham before shipping. Endless was advised by corporate financial advisers Ingram Forrest and law firm Addleshaw Goddard. The management team was advised by law firm Nabarro, while Bank of Scotland provided banking facilities.

Endless, which was set up by former Andersen and Ernst & Young advisers Garry Wilson and Darren Forshaw 18 months ago, has completed more than 20 deals. Companies in the Endless portfolio have a combined turnover of £600m and employ more than 5,000 people in the UK and abroad.

It has its headquarters in Leeds with offices in Manchester and Birmingham.