Design & Supply, a Merthyr Tydfil-based manufacturer of industrial steel doors, has been acquired by its management team in a £3.1 million management buyout (MBO) deal backed by the Development Bank of Wales. The company, which counts Harrods, St Pancras, and Silverstone among its clients, is now owned by an experienced internal management team comprising Tom Grother, Scott Davies, and Damien Regis.
Deal secures 65 jobs
The transaction, which secures 65 jobs, was supported by the Development Bank of Wales through a combination of debt and equity. Founded in 1986 by Terry Stares, Design & Supply previously underwent an MBO in 2016 when long-serving employees Kevin Edwards and Chris Weed acquired the company.
From its 41,000 square foot facility, the company manufactures a wide range of high-specification steel doors for clients across the UK, including National Grid sites, Canary Wharf, and other major infrastructure projects.
Management team's vision
Tom Grother, director at Design & Supply, said: "This is a proud moment for all of us. As a management team, we've been closely involved in running the business for many years, and this deal gives us the platform to take it forward while staying true to what's made it successful." He added that the company is particularly proud that this is the second MBO in its history, reflecting a strong legacy of local ownership and long-term commitment.
Grother highlighted that Scott Davies' journey from apprentice to owner is a great example of the company's ethos. The team's focus now is on building on the foundations laid by previous owners, continuing to invest in people, and delivering sustainable growth.
Development Bank of Wales support
Scott Hughes, senior investment executive at the Development Bank of Wales, said: "This investment demonstrates our commitment to supporting strong Welsh businesses through succession using equity investment. Design & Supply is a highly regarded manufacturer with an experienced management team and clear growth ambitions." He emphasized that by backing the transaction with equity, the bank is helping to ensure continuity, safeguard skilled employment in Merthyr, and support the business to invest for the long term while remaining locally owned.
Advisory team
Legal advice to the vendors was provided by Knights, with Darwin Gray advising the MBO team and Blake Morgan advising the Development Bank of Wales. As part of the transaction, fractional finance director support is being provided by SME Finance Partners to support the business's next phase of growth.
Rhys Gedrych of SME Finance, who acted for the company, said: "Design & Supply is a high-quality business with strong fundamentals, a loyal customer base and a proven ability to deliver consistent performance. The MBO team knows the business inside out and is well placed to drive the next phase of growth."
