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Yorpower deal gives Fusion a boost.

Birmingham-based Fusion Corporate Finance has completed its fifth deal since its launch earlier this year with the management buy-in of a York-based diesel generator distribution and maintenance company.

Stuart Hands, a partner at Fusion, advised the management buy-in team on its acquisition of Yorpower Manufacturing for an undisclosed sum.

Since its establishment by Mike Higgins and Stuart Hands, in addition to the MBI at Yorpower, the specialist corporate finance boutique has completed two acquisitions, an MBO and a fundraising, and is working on two disposals which it expects to complete by Christmas.

Fusion originated the Yorpower deal, finding the acquisition opportunity and debt funding from the Bank of Scotland in Leicester for the incoming management team.

Established in 1989 by vendor Adrian Brown, Yorpower supplies and services new and refurbished diesel generator sets for use as standby power sources.

Key customers include Kvaerner Construction and Smith and Nephew, as well as a number of public sector organisations such as the National Blood Service.

New managing director Guy Phoenix has more than 20 years experience of working in power generation and associated industries.

Previously at Alstom, where he ran a pounds 40 million turnover parts and logistics management division supplying the railway industry, he felt that the time was right to own and manage his own business and approached Fusion to help him find the right opportunity.

Yorpower has an annual turnover of pounds 3.4 million of which nearly 75 per cent is through export of its new generators to Africa and the Middle East, where customers include Ghana Commercial Bank and Taylor Woodrow.

The new MBI team is experienced in the standby power generation market and plans to grow both UK and export sales and increase the company's share of the maintenance market.

'Increasing demand for standby power in the UK with more failures of the supply network, coupled with further requirements for energy in Africa and the Middle East along with existing agents and contacts in key markets meant that Yorpower was a strong acquisition target.

'When you put that together with the skills and experience of our management buy-in team we have a powerful combination for future business growth and a successful deal,' said Mr Hands.

'We are actively seeking out entrepreneurial companies and individuals with whom we can work, and it is evident that our pro-active approach is paying off.'
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Title Annotation:Business
Publication:The Birmingham Post (England)
Date:Dec 7, 2004
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