MANAGEMENT BUYOUT SECURES FUTURE OF CHS
25 July 2020
BCM Construction, a leading principal contractor for rail and transportation sector infrastructure projects, today, announces the completion of a management buyout.
Founder Hugh McGarry, and his long-serving number two Finance Director Terry Sullivan, have sold most of their equity to the remaining management team members and have retired from active involvement in the company.
The new management team lead by Shane O’Halloran includes Stuart Jackson and Dan Wiscombe and have a combined record of more than 20 years’ service with BCM.
The deal also includes two associated companies – Construction Hire Solutions and Equate Design – which together with BCM will fall under the newly formed Enable Investment Holdings group company.
The MBO was supported by the vendors from the outset and has been structured to boost the businesses, with the management team investing additional cash and deferred considerations to vendors pay out over the next three years.
Shane O’Halloran commented: “We are delighted to announce this buyout, which is the completion of a long and well-considered succession plan which has been several years in the making.
The management team would like to thank the vendors for their faith in supporting this transition and we look forward to continuing our journey with BCM and its sister companies.
There are many exciting developments coming down the track which we look forward to implementing over the coming months and years.
We would be nowhere without our dedicated staff and loyal customers, who we thank for their continued support.”
London-based BCM was established in 1985 and has built a strong reputation as a safe and reliable pair of hands, primarily delivering projects in the rail infrastructure sector.
The company employs 80 people and will deliver circa £40m revenue in its current year, continuing with the company ethos of “aspiring to excellence in everything we do”.
All businesses are performing strongly, have solid opportunity pipelines and are well-funded. Flagship company BCM has experienced strong performances in recent years which saw the establishing of its sister organisations to vertically integrate key-supply chain activities.
The rail sector will remain a key focus area for BCM, however successful contract awards in the Utilities, Local Authority and Highways markets will provide opportunities for diversification and growth.
While the recent coronavirus pandemic has tested the resilience of the businesses, the companies were able to continue trading and deliver critical infrastructure projects without having to lean on Government financial support.
“Our staff and customers have been amazing throughout the coronavirus pandemic. We were able to adapt quickly, introducing mitigation measures to ensure our critical workers could work safely,” added Mr O’Halloran.