LINDSAY Plant, the Kilmarnock-based excavation plant hire specialist
which claims to be the biggest of its kind in Scotland, has been sold
for #8m by the two brothers who founded it in 1966.
The management buy-in deal, backed by Royal Bank Development Capital's
Glasgow office, is being fronted by Paul Garvey, until recently managing
director of Alexander Ross Holdings, the Carronshore-based maker of fine
soaps and distributor of janitorial supplies.
There is also a management buy-out element to the Lindsay sale, with
three established senior Lindsay staff -- depot manager Robert Taylor,
plant manager Gerry Millar and company secretary Margaret Dempster --
all joining Garvey in taking a personal stake in the business.
Brothers George and Jim Lindsay are each retaining a 2.5% equity stake
but, at the ages of 50 and 53 respectively, are realising most of their
interest in the business. George Lindsay, the corporate driving force
behind the group for nearly three decades, becomes part-time chairman
and will work closely with Garvey to expand the business. Brother Jim
will retain a significant role on the service side of the operations.
Garvey, a 42-year-old Irishman who in 1983 was finance director and
one of the team who took Glasgow-based PCT Group to a market listing,
says a stock market listing for Lindsay is one of his goals in the
medium term.
Lindsay, which operates a fleet of 170 excavators and dozers on sites
right across central Scotland, will have a turnover of just under #8m in
the current year, which ends this month. Profits are undisclosed but are
said to be very healthy in a sector where margins are notoriously thin.
Assets, at cost, total some #9m.
George Lindsay says the deal, which is worth more than #10m in total
when leasing elements and resources for expansion are included, offers
the group an exciting future. ''After nearly thirty years building it,
we wanted to see this company go to a good home but retain its own
identity. Who knows what it might grow into in another five years
time.''
One of the new team's priorities will be geographical expansion, based
on Lindsay's strong reputation for quality service. Most of the 200
people on the Lindsay payroll are skilled operators for every piece of
equipment hired.
The sale, which was handled for the Lindsay brothers by Arthur
Andersen's Glasgow office, attracted interest, and latterly two rival
offers, from other plant hire companies.
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