Midlands specialist oil manufacturers acquired with support from Cynergy Business Finance
Halesowen-based Midland Oil and Wolverhampton-based Rods Oils, oil manufacturers specialising in metalworking lubricants, have been acquired by Richard Parry and Mark Hayes. The Management Buyout (MBO) was supported by a £3.4m invoice discounting facility and property loan from Cynergy Business Finance (CBF).
Midland Oil is a specialist high-performance lubricant manufacturer that produces an extensive range covering a multitude of application areas. These include almost any grade of industrial, metalwork and automotive lubricants, providing a full spectrum of products to the manufacturing sector.
Rods Oils is one of the most versatile UK suppliers of manufactured oils. It specialises in metalworking fluid applications, supplying market leading water mix fluids and advanced neat cutting oils, which are at the forefront of cutting fluid technology.
After working within the businesses for several years, the opportunity arose for Richard and Mark to acquire the businesses in an MBO from the previous owners and form a new business, Midland Oil Refinery Ltd.
With the need for additional capital in order to support the MBO, CBF were introduced to Midland Oil by Huxley Corporate Finance. Working closely with the new management team, CBF were able to assist in raising the necessary funds through a flexible invoice discounting facility and property loan.
Having provided the necessary capital to support the acquisition, CBF will continue to work with Midland Oil Refinery Ltd., acting as its funding partner to support its long-term growth plans.
Richard Parry, managing director at Midland Oil Refinery Ltd, said: “From the second we were introduced to CBF, we were confident we had selected the right partner for our MBO. Every communication was professional, most impressive was the patience and education extended to both myself and Mark as this was a new world we were entering into.
“CBF will form part of our progress for all future developments and acquisitions, the newly formed Midland Oil Refinery has plans to grow and give the employee a business to be proud of.”
Dave Golding, managing director at Cynergy Business Finance, added: “It has been a pleasure to work with Richard and Mark to support the MBO of Midland Oil and Rods Oils. The facilities provided by CBF showcases how our flexible multi-asset-based lending products provide support to UK SMEs.”
“I am delighted that Richard and Mark chose to partner with CBF to support them on this journey and I am looking forward to watching the business flourish further under their leadership.”