Hinge and Rack It

March 15th 2004 is a date that will always be significant for Redirack. On that day we became an independent company for the first time in our history. After many months of clandestine meetings and negotiations we were free! Free to go and build on the success we had achieved over the last thirty odd years as a group company. Free to invest in the business to develop its manufacturing facility, and free to expand our work force and channel to market.

This is the story of those memorable days back in March and what has happened since:

The announcement:

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 buy out 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 cooperation 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 longterm 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 work force, many with over 25 years 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.”

What's happened since:

Having signed the agreement and informed the work force the first thing to do was to announce the buy out and beat the industry rumour mill. This was done with various editors, journalists and dignitaries being given phone briefings. This was on top of the electronic circulation of the official announcement.

Our customers, suppliers and distributors also had to be told. More phone calls and emails!

By the 16th March we reckoned we'd told everyone that would be even remotely interested, and some that weren't!

Over the following weeks we put into motion the investments and appointments that we had planned.

New roll form line:

Our plan had always been to add an additional roll form line. These are the machines that form the rack upright and beam sections from strip steel. We now have another one!

Our new machine was commissioned and rolling before the end of March. It gives us more flexibility as now we can roll different upright sections and beams at the same time.

The objective of installing the additional line is to reduce lead times. It does this by giving us additional capacity and the facility to pre-punch the steel before rolling. This means faster through-put and better control of the symmetry of the finished section. A high quality product produced faster and more consistently!

New appointment:

Our distributors are a very important route to market for our product. They augment our direct sales team and sell our product into places we never would. They also offer our customers a local source of parts, spares and expertise. We want to support them better and appointed a new person to do just that: Emma Brace joined to take-up the challenge.

Responsible for helping the distributors with marketing support, pricing, costings, design and technical issues, Emma has been in the "industry" since 1995. She worked for Dexion in both the UK and South Africa and has the distinction of having obtained the order for the largest ever Dexion installation in South Africa!

She has started quickly and our first distributor conference has already been and gone! It was a great success, and our distributors gave us some very positive feedback and items to work on for them.

Emma looks after the network of twenty five independent companies that cover the UK and Ireland selling our racking and mezzanine floor products. She has been surprised at what she has found since joining us: "Redirack have an incredible loyalty." She explains. "Both the company's distributors and customers seem to recognise that Redirack has a different attitude to business than their competitors. Redirack asks what it can do for its customers and distributors rather than telling them what they are going to get."

Emma has already done the tour and seen all our distributors. First impressions are good. "I've not heard a bad word about them (Redirack)." She is delighted to report. "People who have bought from Redirack seem very positive about the product and the service. Its something very strong to build on."

Emma's appointment is another indication of the confidence the management team has in Redirack's future.

The future:

Redirack is a leading manufacturer, and well known brand, within the pallet racking industry. It is poised to benefit from its new found independence, building on the commitment of the work force, the loyalty of its customers and distributors and the determination of its new owners to fulfil the promise the company has always had. Which, up until now, has been hidden within larger corporations.