Bullish Bear keep their team at Mincoffs busy

May 28 2008 by Peter McCusker, The Journal

MINCOFFS law firm has completed a busy year of instructions for Northern Bear plc to support its acquisition trail.

The Newcastle firm has advised the group on a series of deals in its first year as a listed company, a year which last week saw it report a £32.2m turnover and a pre-tax profit of £2.3m.

Northern Bear’s principal activity is to acquire and operate building businesses companies based in Northern England. There are currently 12 businesses in the Newcastle-based group which together employ over 500 people.

Mincoffs commercial team has advised on the acquisition of four businesses in the group’s last financial year, each of which has been trading for many years and has a strong client base.

The year started with the purchase of Chirmarn Surveying Limited, an asbestos surveying business, and Chirmarn Limited, an asbestos removal business, for £3.7m. Both are based in Blaydon.

They then completed the deal on Hastie D Burton Limited, a long established building firm based in Wallsend for £1.1m, and, later, the first acquisition outside their North East heartland – Leeds-based Jennings Roofing Ltd for £5m.

Amidst an extremely active year, Mincoffs’ corporate team also helped Northern Bear to secure new banking facilities with Yorkshire Bank, totalling £11m, which have been extended further in the current financial year.

John Nicholson, partner at Mincoffs, said: “All the businesses we have helped Northern Bear secure have added considerably to the group’s healthy first set of trading results, as they demonstrate consistent profitability, positive operating cash flow and have experienced management teams.”

In the group’s current financial year Mincoffs have already advised Northern Bear on the purchase of two further companies, both completed on the same day – A1 Industrial Trucks Ltd deal was worth over £4.5m and DJ McGough Ltd, a plumbing and heating firm for £2m – showing that in the current climate business Northern Bear is bucking the general trend.

Mr Nicholson added: “Northern Bear is still seeking new acquisition opportunities. It aims to become one of the main suppliers of specialist buildings services in Northern England through both acquisition and organic growth.

“The group has a pipeline of potential further acquisitions which looks strong. There will be continuing opportunities for growth, driven by the need of owners of small, self contained, profitable businesses to realise all or part of their equity.”

David Jay, financial director at Northern Bear said: “Our results are testament that our approach is working, and this can only be achieved with help of the right advisers. Mincoffs’ commercial team has been a vital link in our securing these last six acquisitions swiftly, not least when they demonstrated their commitment in securing two deals and completing an extension of our bank facilities in one day last month.”