UK-based turnaround investment company Endless LLP has purchased West Midlands, UK-based steel bar producer Niagara Lasalle (UK) Limited from its US-based parent company Niagara Corporation with total committed funds to the deal of £27 million ($42.1 million).
According to an Endless LLP release, Niagara Lasalle employs more than 300 people and operates from six processing and distribution operations throughout the UK. The group provides hot rolled and bright steel bars in engineering steel grades and has approximately 5,000 customers across the UK, Europe and North America ranging from major automotive OEMs to general manufacturers and specialist engineers. With sales revenues in excess of £60 million for the year to December 31, 2010, this acquisition represents the purchase of a well established and successful business allowing the parent to focus on its core US markets.
As part of the transaction GE Capital has committed significant facilities to support both working capital and acquisition funding. Endless LLP also acquired a number of properties it operates from in the UK, together with agreeing a comprehensive supply agreement to ensure enhanced trading with its former parent company in the US.
Tarlok Singh, chief executive of Niagara Lasalle (UK), said, "This deal represents an ideal opportunity to continue the development of a great business of which I have been in charge for many years. I am delighted to secure the long-term future of the company and intend to grow the business both in the UK and via increased exports."