S&S Steelstock has acquired Trident Sections to support its growth plans and create new roles. DJH led the transaction through its corporate finance team and used in-house specialists within VAT and fundraising. Head of finance David Wright secured a seven-figure financing package from HSBC UK to support the deal. Eight DJH staff members from offices in the North West and the Midlands handled the acquisition and completed it within a short timeframe. The deal positions S&S Steelstock to pursue work in the automotive, construction, and electrical sectors.
“This is a fantastic purchase that brings together two-well established Black Country businesses, who collectively have more than 60 years of industrial heritage between them,” explained Lewis Pearson, corporate finance director at DJH.
“S&S Steelstock has a long-standing background in supplying products to the auto supply chain, and this deal gives it the opportunity to capitalize on Trident Section’s expertise in specialist narrow slitting, whilst also expanding into galvanized steel capping and channel works – predominantly for the electrical wholesale market.”
He continued: “The two firms share similar manufacturing values of quality and delivery performance, and this deal creates efficiencies of scale and the ability to bolster on complementary capabilities to the S&S offer.”
“Importantly, the two businesses will now both be operational from the 15,000 sq ft manufacturing facility in Kingswinford, creating immediate additional capacity and helping to reduce lead times to customers.”
Lewis added: “The acquisition highlights the wide range of expertise and specialisms we can bring to the table, whilst keeping everything in-house definitely accelerated the process and completion date. We’re seeing a spike in interest from clients looking for a professional services provider that can look after most of the deal from start to finish.”
Chris Downs, director of S&S Steelstock said: “We are 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 and this allowed us to focus on everyday business activities, whilst the purchase was being formulated and completed. Despite all the complexities, it has been a relatively smooth process!”
DJH worked with Luke Pritchard and Sophie Knapper at Knights on the legal aspects of the deal. The seven-figure funding package combined a cash-flow loan, a commercial mortgage, and an invoice-financing facility arranged with HSBC UK.
Melissa Orpe, area director for HSBC UK, went on to add: “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, whilst 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, concluded: “Every successful transaction relies on strong partnerships. DJH led the financial strategy, whilst 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.”
Source: S&S Steelstock
About S&S Steelstock
S & S Steelstock is a UK steel supplier based in Kingswinford in the West Midlands. The company was founded in 1991 and provides mild steel coil, plate, sheet, and sheared blanks. It serves customers in manufacturing, construction, and metal-working industries that use steel materials for fabrication and structural work. The firm buys and stocks steel products, processes orders, and supplies raw steel materials for use in industrial and commercial projects.