Seven-figure deal secures SAS for senior managers
Apr 7 2008 by Karen Dent, The Journal
THREE senior managers of a specialist alarms business have bought the company in a seven-figure deal.
Hilary Case, Bryan Smith and Daniel Eastwood have paid an undisclosed sum for Newcastle-based Specialist Alarm Services Ltd (SAS), which designs, manufactures and installs alarm systems for the healthcare industry.
The three, who have almost 50 years’ experience between them at the company, bought out the 27-year-old business from retiring owners Robin Forster and David Huggins.
SAS alarms can be found in NHS Trusts, care homes and other healthcare facilities both at home and abroad. The business specialises in nurse call systems, which patients use to alert staff, and staff attack alarms that are designed for healthcare professionals working in higher risk environments.
The team, which has pledged to retain both the current staff of 18 and the firm’s Newcastle headquarters, said: “A great team assisted us in securing the future of SAS in the North East and the jobs of our colleagues.
“The management buy out is a great opportunity for us and we wish Rob and Dave well in their retirement.”
The buy-out team received legal advice on the deal from lawyers Ward Hadaway and financial advice from chartered accountants Baker Tilly.
Mike Spetch, corporate finance partner at Ward Hadaway, said: “SAS has developed an excellent reputation within the industry and has a long track record of producing and maintaining high quality security systems for this particular market.
“The new owners know the company and the industry very well and I am sure they will put this experience to good use to ensure the continued success of the business.”
Angela Toner, corporate finance partner at Baker Tilly, said: “We are delighted to have been able to secure the deal for Bryan, Hilary and Dan and look forward to working with this very successful business going forward.”
The management buy-out team’s funding came from Clydesdale Bank.
Sellers Mr Forster and Mr Huggins received legal advice from Muckle LLP and corporate financial advice from Armstrong Watson corporate finance.
The timing of the deal means it was completed before the end of the tax year and the controversial changes to the Capital Gains Tax (CGT) regime. Since midnight on Saturday, vendors are now taxed at 10% for the first £1m of capital gains but must pay a tax rate of 18% on additional gains.
