West Midlands aluminium supplier looks to new chapter after MBO

A West-Midlands-based aluminium company is looking to a new chapter after securing a management buyout (MBO), with support from Allica Bank.  

LA Metals is a supplier and fabricator of aluminium extrusion products, with clients ranging from Next and Burger King to the Ministry of Defence. Founded in 1987, the business started out selling aluminium materials business to business (b2b) and offering custom fabrication. After a period of growth, LA Metals added to its b2b same-day offering, launching Aluminium Online in 2022 with the aim of selling shorter and bespoke lengths of aluminium extrusion directly to consumers.

The business, based out of two facilities in Smethwick, is now stepping into a new chapter of leadership after an MBO from its previous owners, supported by a loan from Allica. The new owners of the business, Finance Director Justin Bates and Operations Director Chris Grierson, are taking the reins backed by years of direct experience, having worked at LA Metals for 11 and 8 years respectively.

The Growth Finance loan from Allica Bank has supported the acquisition alongside providing working capital to the business for continued growth. Looking ahead, the business plans to invest in new machinery to increase its production capacity and offer new services, such as a laser cutter to add value by offering bespoke components to clients. Directors Justin and Chris also have plans to expand into new, bigger premises and increase their workforce as a result.

Chris says: “Justin and I are delighted to finally get started on this new chapter of growth for the business, something which has been in the pipeline for a long time. We have bold plans to expand the business’s offerings, essentially becoming a one-stop shop for our customers. We initially thought the buyout was likely to be a tall order – but Allica made it so easy from start to finish, and there’s always been someone to speak to when we’ve had questions.”

Amy Beasley, Regional Lead for Growth Finance at Allica Bank, has been assisting the business with the MBO. She says: “Justin and Chris have such a clear vision for where they want to take the business under their leadership, and it’s been a joy to help make this acquisition a reality. LA Metals is a prime example of an established business quietly working away to provide an essential service and we at Allica are proud to support them through that.”

Management was advised by Mike Yiannis at Odyssey Corporate Finance, while Legal Clarity provided legal support to both management and the vendors. Sanderson Weatherall provided asset due diligence. Victoria Baker at Pinsent Masons provided bank legals.