ThinCats funds ‘high-performance’ MBO for component coatings specialist, Teer Coatings

28-Feb-2019

ThinCats is pleased to announce that it has supported the management buy out of Teer Coatings from its previous owner, Miba Coating Group, Miba AG in a 7-figure transaction. 

As part of a periodic review of the Coating Group, it was decided that Teer Coatings was non-core to its strategy and, therefore, the long-established and experienced management team sought to embark on an MBO. With its incumbent banking providers proving slow and unresponsive in their approach to funding the proposed buy out transaction, it had become clear that an alternative finance solution would be the preferred option. Boutique corporate finance firm, Sentio Partners, who acted for the vendors in the transaction, introduced the management team to ThinCats.

ThinCats worked quickly to understand the business model and the needs of the management team and created a flexible funding package featuring both an amortising capital and interest structure as well as an interest only facility with bullet repayment.

Established in 1985, Worcestershire-based Teer Coatings provides PVD (Physical Vapor Deposition) Coatings for a wide range of sectors including Formula 1, Oil and Gas Drilling, Medical and Sensors. They also supply PVD coating equipment to the Minting industry for use in numismatic coining manufacture as well as other industrial sectors. The business, which employs over 50 staff, is also a market leader in the manufacture of coating machines.

The new company owners are Mr Wayne Southall, Mrs Angela Byrne and Dr Hailin Sun who come from the current senior management team of Teer Coatings. They have a combined experience of over 70 years working at Teers between them in various departments.

Wayne Southall, managing director at Teer Coatings Ltd said: “The MBO is an exciting new era for us, particularly as we have grown rapidly within the last few years and we are seeing substantial growth in specialist coatings applications markets. This business is all about high performance and ThinCats certainly rose to the challenge. They injected speed and responsiveness into the transaction, together with a can-do attitude that you simply wouldn’t find with a traditional bank.” 

Rory Wade, partner at Sentio Partners, commented: “ThinCats were very commercial and did everything they said they would do when they said they would do it. You really cannot ask for more from a funder than that. I can safely say that we would not have got there with a traditional debt funder and the ability to move quickly and adapt to changing circumstances has been a key feature of ThinCats in this process. The completion of the management buyout has put Teer Coatings on a very strong footing for the future.”

Ben Kimball, director, regional business development at ThinCats, said: “We were delighted to support the management team at Teer Coatings with the level and certainty of funding they required to secure the purchase consideration for the MBO. We wish them every success with this exciting opportunity to take the business to the next stage of growth.”