Redirack Go For It Alone

The management team at Redirack Limited is delighted to announce that it has taken 100% ownership of the company, buying it from the Norwegian based multinational Dexion Group Limited, for an undisclosed sum. As of 15th March 2004, Redirack Limited becomes an independent company for the first time in its history.

The buyout was led by Phil Culling (managing director), and his fellow shareholders and directors; Jack Holden (operations) and John Watts (finance). Between them they have over 75 years experience in the industry, all with Redirack.

The team has bought the trade and assets of the South Yorkshire based company. This includes the manufacturing plant and equipment and the site in Kilnhurst from which Redirack has traded since 1973.

Phil Culling MD commented; "Problems associated with the closing of Dexion UK early in 2003 prompted us to explore the opportunity of purchasing Redirack Limited. Following consultation and a high degree of co-operation from the Dexion Group the deal was struck. For 32 years Redirack has operated profitably within a group framework, now it has a chance to prove itself as an independent entity."

The MBO has secured almost 100 jobs and shows the level of commitment and confidence the management team has in its workforce, and the future of the business.

Phil Culling went on: “It provides an exciting challenge for the future as well as securing long-term prospects for the employees."

KPMG Corporate Finance advised the management team along with the international law firm DLA. Financial support came from a variety of sources within the region. Yorkshire Bank led the funding along with South Yorkshire Investment Fund, UK Steel Enterprise Fund, and RSA grant via Yorkshire Forward.

Last year Redirack's turnover once again topped £10m. With a skilled and committed workforce, many with over 25yrs service, the company produces a high quality product and competes successfully in a number of European markets.

Phil Culling added: "Redirack is in good shape and more importantly safe hands. The team is looking forward to an exciting and profitable future where they will be developing new products and seizing new opportunities to grow the business."