Bear to pay £7.5m for city heating company
Aug 8 2008 by Graeme King, The Journal
AMBITIOUS Midlands company Southern Bear has agreed a deal worth up to £7.5m to buy out Newcastle central heating business Fenhams.
Industrial, engineering and support services business Southern Bear is headed up by chairman Jon Pither, an experienced businessman who is also head of County Durham’s Northern Bear – also in support services, as well as being a director of North East firms Tanfield Group, Metnor Group and Premium Bars & Restaurants.
Yesterday, Southern Bear company secretary John Green said Pither, 74, was still ambitious for more success – and has already registered the names Western Bear, Eastern Bear and Golden Bear, to allow him scope to expand his interests still further.
Pither, who lives in Esher, Surrey, has struck a deal with the Richardson family who control 27-year-old Fenhams – subject to Southern Rock shareholders agreeing the deal. The initial payment will be £3m cash, with a further £750,000 worth of shares going to the Richardsons, and then up to another £3.75m over the next three years if certain profit targets are met.
It is expected that Pither and his team at Southern Bear, based in Leamington Spa, will follow their usual business model of allowing the existing Fenhams management to continue running their company as an independent entity, rather than merging it with other interests.
Yesterday Green said: “We are a very acquisitive group of companies, and we are looking to expand and develop our support services division. Our stated policy is to allow all our companies we acquire to retain their own individuality and management.
“You need to watch this space. We have secured the names of Eastern Bear and Western Bear, as well as Golden Bear, and they could be used when we have suitable businesses for them. The businesses are more important than the location,” he said.
“Mr Pither is a vastly experienced director of public companies and his enthusiasm is undimmed.”
Fenhams was founded in 1981 and employs around 190 staff with annual sales of around £8m. It specialises in the installation, servicing and maintenance of central heating systems and also carries out building repairs and maintenance in the private and social housing market. Customers include eaga – which manages the Warm Front scheme on behalf of the Government.
....
Click on the links below to chart the progress of Northern Bear:
APRIL 2008: Northern Bear adds to portfolio
MAY 2008: Bullish Bear keep their team at Mincoffs busy
NOVEMBER 2007: Northern Bear plans to climb to top of tree
Share
