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Davy Markham

www.davymarkham.com

Transaction Type: MBO
Status: Current Investment
Sector: Heavy Engineering
Investment Date: July 2007
Deal Size: Undisclosed

Endless Contact: Christopher Clegg

BACKGROUND

DavyMarkham Limited (“DavyMarkham”), based in Sheffield, specialises in heavy engineering, design, machining and fabrications. The Davy and Markham businesses, merged in 1997, have a 180-year history of engineering excellence in the South Yorkshire region.

The business and its 170 highly skilled employees have unique manufacturing capabilities, with DavyMarkham being one of the few facilities in Europe with the capacity to lift and machine castings of up to 300 tonnes in weight. The Company has an international customer base and focus and works closely with its neighbours Sheffield Forgemasters and Siemens VAI to provide engineering solutions to this global market. In recent years, DavyMarkham has supplied large infrastructure products to prestigious projects such as the Thames Barrier, the Channel Tunnel boring machine, the Millennium Bridge and Heathrow's Terminal Five Control Tower.

INVESTMENT COMMENTARY

Endless acquired DavyMarkham as part of a Management Buyout from T H Group plc (the former Kvaerner Group) in July 2007, when it was delivering sales of £14 million.

Endless backed Kevin Parkin and Duncan Hay, the incumbent interim Managing Director and interim Financial Director respectively, who then took permanent positions on the Board. Kevin and Duncan have made significant strides in transforming the performance of the business, with sales in 2009 forecast to have grow to £25 million, underpinned by a strong order book, and sector-leading profitability.

Endless also acquired the freehold to the site occupied by Davy and several other industrial tenants at Darnall Works, Prince of Wales road via a sale and leaseback transaction. Another key element of the Endless investment strategy was to undertake a development and refurbishment project on this site to create an industrial park that will help boost manufacturing and employment in Sheffield, which was largely completed by mid-2008.

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