Management buyout sources strong investment
Eurosource Ltd are planning a major expansion following a
The Wales Co-operative Centre has successfully brokered a
buy-out deal worth over half a million pounds for the
Aberbargoed-based supplier of pipe, fittings, flanges and valves to
the oil, gas and energy sectors.
The deal was corner-stoned by a £300k equity and loan investment
from Tata Steel subsidiary UK Steel Enterprise, with the company’s
existing backers, Finance Wales contributing an additional £140k
loan to the deal.
The five person management buy-out team was led by Karl Williams,
the Managing Director. Each member of the team made a substantial
personal investment to purchase the shares from former shareholder,
Gary Williams, Chairman.
The buy-out was brokered by Paul Cantrill from the Wales
Co-operative Centre’s Business Adviser team. It will ensure the new
management team can continue to develop and grow the business,
which employs around 25 people in the Aberbargoed area and also has
The new team hope to be able to move towards a wider employee
ownership approach as the business develops.
Karl Williams said “the investment from UK Steel and support from
Paul Cantrill of the Wales Co-operative Centre has been invaluable
in the buyout process. A second curve has begun and exciting times
are ahead for all concerned at Eurosource Ltd.”
Glyn Thomas, Investment Executive with UK Steel Enterprise in Wales
commented “we are delighted to support this deal to take Eurosource
forward under its new management team. UK Steel Enterprise aims to
help support Welsh companies with aspirations to grow and create
local jobs, and we are sure Eurosource will do both these things.
We wish them all success with their expansion plans.”
Paul Cantrill, is a Business Advisor for the Welsh Government and
European Regional Development Funded Social Business Wales project
which is run by the Wales Co-operative Centre.
He commented “I am very pleased for the new team leading
Eurosource. They will consolidate Eurosource as an important
supplier to the engineering and energy sectors. The accompanying
investment from UK Steel Enterprise will further strengthen the
company’s position and management.”
Finance Wales’ loan enabled one of the new management team to
participate in the buy-out. Portfolio Executive, Steve Elias, who
led on the deal for Finance Wales, added “we’ve backed Eurosource
for 9 years through an exciting period of growth and we’re
delighted our loan has helped to facilitate this management
buyout. The company has some ambitious expansion plans and we
look forward to working with Eurosource on the next part of its
The deal and investment was supported by Chris Inson of Capital Law
who provided legal advice and services to the management buy-out
The departing majority shareholder, Gary Williams, was advised by
Seamus Gates of Broomfield Alexander.
Wales Co-operative Centre supported the Management Buy-Out process
with funding secured from the European Regional Development Fund
and Welsh Government.