Drainage deal sees turnover rise for Owen Pugh & Company
Dec 15 2010 by Peter McCusker, The Journal
NORTH East commercial law firm Muckle has helped construction firm Owen Pugh & Company acquire Durham drainage company HCS Drain Services.
The team at Newcastle-based Muckle successfully completed the acquisition in just two weeks, enabling HCS Drain Services to become part of Owen Pugh’s drainage and sewage division, providing it with larger capacity and expertise for infrastructure works.
The acquisition has partly contributed to an increase in turnover for Owen Pugh from £20.4m to £25m.
Joanne Davison, associate solicitor at Muckle, said: “Owen Pugh is a long- standing client of ours and this is the second acquisition we have handled for the company as it grows and strengthens its portfolio of services.
“This particular deal had to be completed in a very short timescale and I am delighted at the positive outcome for our client. We had a team of six working on the purchase, headed by partner Peter Robinson who project managed and coordinated the sale process.”
Communication was critical throughout the deal, with Muckle saying they ensured the management team at HCS Drain Services was fully behind the purchase and that a positive relationship between both companies was built at the earliest opportunity.
John Dickson, executive chairman at Cramlington-based Owen Pugh, said: “This purchase was a very good strategic fit for us and we are continuing to grow and invest in our business.
“The acquisition of HCS Drain Services is another welcome addition to our group.
“Muckle was instrumental in helping us to secure this deal so quickly and we are extremely grateful to the team for all of its support. They were excellent at handling the acquisition sensitively and at mediating between both ourselves and HCS Drain Services. This meant that the entire process went very smoothly and the purchase was achieved in the challenging timescale we wanted.
“We’re not just absorbing the company, we have already invested £350,000 on additional plant and equipment, allowing us to bid for and win much bigger infrastructure contracts. We hope this will lead to job creation moving forward and would like to thank the team at Muckle for all of their help.
