The management team at Harrogate-based Contract Natural Gas Ltd (CNG) has successfully completed the second stage of its MBO.
In November 2011, the directors of the UK’s leading independent supplier of commercial gas bought the firm from the family of its original founder.
The Company provides natural gas to SMEs across the UK in sectors including leisure, retail, hospitality and residential care.
CNG has seen significant growth recently with turnover increasing from £60 million in 2011 to over £140 million this year, and the business now employs more than 60 people.
This month saw the final piece of the transaction take place where the remaining minority shareholders were bought out in a move supported by the Company’s incumbent bank, the Co-Operative Bank.
Jacqui Hall said:
“Completion of this vital final stage of the MBO is a significant milestone in our continued growth and a step forward for CNG as a whole.
“We are moving into the consumer consciousness as a real alternative to other suppliers and our successes in recent months are testament to our ability to not only keep up, but excel in this industry among major brands.”
The transaction was funded by the Co-Operative Bank, who had financial due diligence support from Baker Tilly’s transaction services team, led by Corporate Finance Partner Mark Pownall, and supported by Manager Laura Howes.
Mark Pownall said:
“We are delighted to have been able to support CNG with the final stage of the MBO. The business has shown remarkable growth in a difficult trading climate and Baker Tilly look forward to working with them on future projects.”
James Nightingale of Watson Burton provided legal advice to the Management team. Dan McCormack of Lupton Fawcett Lee & Priestley provided legal advice to the Co-Operative.
CNG’s success has been recognised during this outstanding period of growth and fought off stiff competition by coming third in the Yorkshire Fastest 50 Awards 2013 in the Growing Large Business category.