Debmat Surfacing Acquired in Seven-Figure BIMBO Deal
Gateshead-based contractor Debmat Surfacing Limited, trading for almost 50 years, has been acquired in a Buy In Management Buy Out (BIMBO) supported by a seven-figure investment from NPIF II – NEL Debt Finance, managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II).
Established in 1979 as a surfacing contractor and civil engineering business, Debmat provides domestic and commercial surfacing and civil engineering solutions to sectors including construction, commercial, retail, and education. The investment will support the firm's next growth phase, with plans to introduce complementary services such as remediation activities in response to client demand, expected to create new jobs.
New Leadership Team
The incoming ownership team comprises Debmat's existing co-managing director John Turner, Nick Shilling (former managing director of Thompson's of Prudhoe), and Ian Wilkin (a chartered accountant and former CFO/COO of a New York-based real estate private equity firm). Turner, with over 32 years of sector experience, will move from managing director to chairman. The management team is strengthened by Martin Barker as managing director and Ben Harris as commercial director.
Shilling worked at Thompson's of Prudhoe from age 16 and became managing director, leading significant growth and earning Contractor of the Year at the World Demolition Awards. Before selecting Debmat, Shilling and Wilkin reviewed over 25 acquisition opportunities. They have known each other since college and worked together on multiple projects.
Quotes on the Deal
Nick Shilling said: “We are thrilled to be joining forces with John and his outstanding team at Debmat. We are excited to have the opportunity to help grow the business further, exploring new complimentary service lines and expanding into new geographies with clients who see Debmat as a trusted partner. We are grateful for the support of the whole Debmat team, as well as the advisors and partners who have supported us in making this opportunity a reality. The NEL team and our legal and advisory partners provided fantastic support at all stages of the transaction, confirming that we chose the right partners to join us in this transaction. We look forward to continuing our relationship with them as we grow.”
Rachael Munro, Investment Executive at NEL, added: “Debmat is a fantastic business with a strong reputation, a skilled team and real momentum for the future. We are delighted to support this next chapter and back an experienced leadership team with ambitious plans to build on the company’s success and create further opportunities for growth. It was a pleasure to work alongside all of the advisers involved, and the collaborative approach throughout the process was instrumental in ensuring a smooth and successful transaction.”
Legal and Advisory Support
The legal side of the transaction was supported by Hill Dickinson LLP acting for Debmat, Muckle LLP acting for NEL, and Swinburne Maddison acting for the sellers. Sarah Newbould, senior investment manager at the British Business Bank, said: “Through the Northern Powerhouse Investment Fund II we are proud to be backing engineering and infrastructure businesses like Debmat Surfacing that sit at the heart of the UK’s Modern Industrial Strategy. Investments like these are key to helping strengthen regional construction and civil engineering capacity, create highly-skilled jobs and drive long-term economic growth across the North.”
