Southern Bear success helped by North buyouts

Jan 6 2010 by Peter McCusker, The Journal

THE acquisition of a third North East company by industrial support services firm Southern Bear will help raise its annual turnover to more than £40m, with regional firms now contributing around one-third of the Midlands group’s revenues.

North Shields-based fire protection company Intumescent Protective Coatings Limited (IPCL) has become the latest addition to the Southern Bear portfolio in a deal worth £4.8m.

AIM-listed Southern Bear, which is an offshoot of North East building services group Northern Bear, now has seven businesses under its umbrella with three of these, Fenhams of Newcastle, Ronald Thompson of Gateshead and IPCL being based in the region.

Southern Bear chairman Jon Pither, who has a long involvement in North East business, believes there will be further opportunities for growth.

“IPCL is a national leader in its field and will strengthen the support services arm of the company significantly,” he said.

“Furthermore, the acquisition will give critical mass to Southern Bear’s operations and demonstrates clear commitment to delivering a wider range of services to customers.

“The support services market is huge, a multi-billion pound market. It is currently fragmented and this gives us an excellent opportunity to grow, both organically and through acquisition.

“We prefer to grow organically, but when we have to make a purchase we will, with the most important consideration being the right fit with the people running the company.”