A Carmarthen carpenter has led his management team to complete a multi-million management buy-out of the double glazing company that he set-up in 1989.
Funded by the Development Bank of Wales with a mix of loan and equity, the management team of award winning Nolan uPVC has bought the business from the current Managing Director, Nolan Nicholas.
With 56 employees, Nolan operates from a 52,000 sq ft state-of-the-art facility in Johnstown, Carmarthen that includes a walk-in design studio. A further operational depot and design studio is located on North Road, Cardiff.
Nolan was named as Installer of the Year at the prestigious G19 awards in November 2019. With a unique ten year guarantee on all products, Nolan has a mix of direct domestic sales and installation, trade sales to other installers and commercial customers. All products are recyclable.
Nolan Nicholas said: “I set out to create a service-focused business that didn't fit into the stereotypical image of double glazing companies. Thirty years on and we have a fantastic team that shares my ongoing commitment to quality of installation and after sales care.
“The management buy-out is a natural progression for me and I am very proud to see my management team, who has over 80 years combined experience with Nolan, take on the business with my ongoing support. The funding from the Development Bank of Wales means that the team has the right support and capital to drive them on to even greater success.”
The MBO team of Paul Murphy, Adrian Phillips and Jason James said: “We are a close knit family run business that has Nolan’s values and principles at the heart of all that we do. Nolan will continue to support us so it is very much business as usual as we look to develop our offering of UPVC and aluminium doors, windows and conservatories across Wales and the South West. The funding from the Development Bank of Wales has made this deal possible and their ongoing support as a shareholder means that we are really looking forward to what the future holds.”
Funding for the management buy-out was provided by the Wales Management Succession Fund. The £25 million scheme is financed by the Welsh Government and Clwyd Pension Fund. Loans and equity investments between £500,000 and £3 million are available with terms ranging from one to seven years.
Stephen Galvin of the Development Bank of Wales added: “Nolan has developed an incredibly successful and solid business that is trusted and valued by customers and colleagues alike. His passion and care is instilled in the management team who have done a great job of building the business to where it is today.
“Funding for this type of management buy-out is exactly the reason why the Wales Management Succession Fund was established; providing aspiring new owners with the right type of finance they need to buy indigenous businesses and drive them on to even greater success.”
Successful succession deals happen with the backing of expert advisers who have aligned goals. This deal involved financial advisers Alison Vickers and Alun Evans of Bevan Buckland. Sheraz Akram of Douglas-Jones Mercer acted for the vendor and Richard McTaggart of McTaggart Solicitors for the management team. Natalie Lane of Hugh James and Tanya Wilson of Haines Watts acted for the Development Bank of Wales.