Johnson joined MSD with a view to turning the business around and was offered a fifty percent share of the crane hire division. From early on, and after securing some larger contracts in the construction industry, it was apparent that a better proposition would be for the company to change hands completely and Johnson was able to convince owner Peter Stephens to sell for an undisclosed sum.
MSD Darlington, an established company which includes a property division and steel erection division, will continue to trade. After the MBO, the crane hire division will now trade as MSD Lifting and will retain its two depots in Darlington and Gateshead employing 35 staff.
The company owns and operates 20 cranes ranging in size from 15 tonnes to 200 tonnes.
Speaking about his acquisition, Johnson said:
“I am confident that the business will grow successfully and expect to increase the present £3million turnover to £5million in three years. We are already in the process of looking at purchasing additional cranes in order to meet demand which will in turn create employment which is good news for the region.”
Joint funding for the MBO was provided by venture capitalist, NEL and Yorkshire Bank.
Tait Walker Corporate Finance acted on behalf of Mr Johnson. Legal advice on the buy out was provided by the acquisitions team at Stockton based law firm Jacksons.
