S&S Steelstock targets growth with Black Country acquisition

An ambitious multi-product steel stockholder has completed a significant acquisition that will double its revenues, increase manufacturing capability and open new markets. S&S Steelstock, which is run by Directors Barry Collins, Chris Downs and Jon Elwell, made the decision to purchase Trident Sections in Kingswinford as part of significant growth plans that will see it create several new roles.

The complex deal required a multi-faceted approach by professional services group DJH. Its corporate finance lead advisory team supported buy-side advisory and utilised in-house specialists within VAT and fundraising – the latter seeing Head of Finance David Wright secure a seven-figure funding package from HSBC UK.

Eight experts from across the accountancy firm’s offices in the Northwest and the Midlands were involved in the acquisition, delivering the purchase within a relatively short timeframe and allowing the enlarged business to make the most of opportunities in the automotive, construction and electrical sectors.

“This is a fantastic purchase that brings together two-well established Black Country businesses, which collectively have more than 60 years of industrial heritage between them,” explains Lewis Pearson, Corporate Finance Director at DJH. “S&S Steelstock has a long-standing background in supplying products to the automotive supply chain. This deal gives it the opportunity to capitalise on Trident Section’s expertise in specialist narrow slitting, while also expanding into galvanised steel capping and channel works – predominantly for the electrical wholesale market.”

He continues: “The two firms share similar manufacturing values of quality and delivery performance, and this deal creates efficiencies of scale. Importantly, both will now be operational from the 15,000 sq ft manufacturing facility in Kingswinford, creating immediate additional capacity and helping to reduce lead times.”

S&S Steelstock, which supplies mild steel coil, plate and sheared blanks, has been a client of DJH’s Bury office for more than 20 years, and approached Director Richard Bell to support the business with the potential acquisition of Trident Sections.

Lewis, who led the transaction on behalf of DJH, says: “The acquisition highlights the wide range of expertise and specialisms we can bring to the table, while keeping everything in-house definitely accelerated the process and completion date. We’re seeing a spike in interest from clients seeking a professional services provider that can look after most of the deal from start to finish.”

Chris Downs, Director of S&S Steelstock, adds his support: “We’re passionate about UK manufacturing and the opportunity to bring Trident Sections into the family represented a perfect fit that will hopefully lead to growth and new jobs. DJH has a been a superb partner on the deal. It meant we could use one specialist for 99% of the transaction. This allowed us to focus on everyday business activities while the purchase was being formulated and completed. Despite all the complexities, it’s been a relatively smooth process.”

DJH worked extremely closely with Luke Pritchard and Sophie Knapper at Knights on the legal elements of the deal. The seven-figure funding package was a combination of a cash flow loan, commercial mortgage and invoice financing facility organised in partnership with HSBC UK.

Melissa Orpe, Area Director for HSBC UK, says: “In completing this acquisition, S&S Steelstock is acting on a clear opportunity and securing the future of valuable manufacturing jobs in the heart of the Black Country. When the business case was made to us, it became apparent that this move adds supply chain stability to the sector, while opening further growth opportunities for the business. We’re excited to see what the future holds for this partnership.”

Luke Pritchard, Corporate Partner at Knights, concludes: “Every successful transaction relies on strong partnerships. DJH led the financial strategy, while we ensured the legal framework was watertight, incorporating advice from our corporate, real estate, banking, tax and employment teams. We were delighted to advise the buyers and are excited to see how the business develops under the leadership of Barry, Chris and Jon.”