Yorkshire Bank backs MBO of pipe fittings firm

Corrosion Resistant Products (CRP), the UK’s only manufacturer of specialist lined pipes, fittings, valves and sampling systems, has undergone a management buy-out backed by Yorkshire Bank Corporate and Structured Finance.

The deal will give control of the business to the managing director Nigel Price and allows the retirement of three of the existing directors.

CRP was founded in 1983 and manufactures and distributes piping and pipe fittings lined with the corrosion-resistant resins PTFE and PFA, commonly known under the trade name of Teflon®. These products provide a corrosion-resistant barrier against the most demanding chemical and pharmaceutical applications. Major clients include GlaxoSmithKline, Bayer CropScience, Fine Organics, Dow Corning, Exxon and Siemens.

CRP employs around 50 staff at its manufacturing site in Littleborough and has manufacturing distributors in Singapore, the Republic of Ireland and the United States. In addition to manufacturing standard products, it also creates bespoke components on behalf of its clients, using machinery designed and built in house for working with these difficult to process materials.

Nigel Price, said: “The buy-out has been key to preparing the business for the next stage of its evolution, allowing us to build on its past success and create a new structure to meet the challenges that face the UK manufacturing sector. Yorkshire Bank played a critical role in making this happen by providing funding for the transaction. The bank emulated our own philosophy of staying close to the customer.”

The Yorkshire Bank team was led by Business Partner June Hartley and Ross Lumsden from Yorkshire Bank Corporate and Structured Finance in Leeds. Ross Lumsden said: “We are delighted to be supporting an existing customer through their next stage of ownership with the support of local advisers. CRP’s world-class manufacturing competence and its problem solving ability have earned it an unrivalled reputation as a solutions provider. The new management team are keen to take the business forward and exploit potential for further growth both at home and in the export markets.”

Nigel Price at CRP was advised by Jonathan Asquez, a solicitor in law firm Gordons’ corporate department, while the exiting shareholders were advised by Adrian Ballam at Schofield Sweeney. Commenting on the deal he said: “It was a real pleasure to work with such a forward-thinking and dynamic management team on this deal, which provides CRP with new opportunities and a strong grounding for the future which will be beneficial both to the company and its customers.”

Mark Davies, banking partner at Cobbetts LLP in Leeds provided legal advice to the bank. Peter Melling of PKF provided financial due diligence for the bank. Phil McCreanor of Livingstone Partners provided corporate finance advice to the management team.

Teflon® is a registered trademark of E.I. du Pont de Nemours and Company used under licence.