AMCO SERVICES (INTERNATIONAL) LIMITED IS PURCHASED THROUGH A MANAGEMENT BUY OUT (MBO) IN A PRE-PACK DEAL SAVING ALL 160 JOBS
Posted on 10.07.2020
UK Midlands based, global logistics, warehousing and transport business Amco Services International (Amco Services) has been restructured and refinanced in a Management Buy Out, by CBW Resources Limited, under the leadership of the former senior management team. There have been no job losses and the newco will continue to trade as Amco.
Amco Services reported 2019 as a record breaking year with continued investment in IT, capital investment across their UK sites and more investment into their fleet both in the UK and Eastern Europe.
The COVID-19 pandemic is continuing to have a dramatic impact on UK industry, people and places with an estimated nine million people on furlough and 7.6 million jobs, or 24% of the UK work force, at risk because of related lockdowns. Governments globally are seeking to slow down the spread of the coronavirus, and as they do this they are having to take dramatic measures, with big implications for economic activity both here in the UK and abroad.
At the beginning of 2020 Amco Services was continuing to invest and gearing up for a £50m year following 53% growth over the past three years. A consequence of the COVID-19 pandemic meant that Amco International Services were unable to service parts of their investment during lockdown
In April 2020 CEO Paul Andrews and the former Amco Services directors sought external professional support to secure new investment to keep the business trading. There was very little interest from any identified potential investors due to the current economic climate; which resulted in a decision by the existing directors, who had personally invested both time and money, to invest further. Additional funding through CBW Resources provided a vehicle through which they purchased Amco Services, saving all 160 jobs.
Working alongside Grant Thornton in a compressed and difficult timeframe and in lockdown conditions proved challenging to the directors, and, on July 2nd the sale to CBW Resources Ltd was concluded in an Accelerated Mergers and Acquisitions process (AMA).
The sale was completed with the purchase of Amco Services assets and goodwill and CBW Resources have confirmed they will continue to trade as ‘Amco’ going forward.
The underlying business remains the same with the existing management team remaining employed and four of the Amco Services directors joining the new board alongside Andrews also becoming shareholders.
Paul Andrews, part of the MBO team commented. ‘Essentially, the business has been restructured and refinanced to give both customers and suppliers confidence and peace of mind that Amco are still the right partner for the future, especially as we begin to emerge from lock down and flex to meet the needs of business today in the new norm.
Andrews continues. We have retained all of the staff and we are going forward with the same management team supported by the existing dedicated planners and administration team, warehouse operatives and frontline drivers.
The management team have been liaising directly with customers and suppliers to ensure a smooth transition over to the new Amco entity. A management buyout requires a strong partnership between all parties to overcome inevitable hurdles and we have always had very strong relationships with both our staff, our customers, suppliers and our supply chain partners.
Essentially, the management team already employed will combine their individual resources to take full control and ownership of the company, building on our existing knowledge of its services, products, processes, and structure to help drive it to new levels of success.’
The new board of directors and shareholders are Paul Andrews, Don Mucci, Seán Trainor, David Careless and Mark Jones