STEEL fabricator S&A has announced the sale of the building fabrication side of the business in a management buyout, as a result of major changes at the company in the past two years.

The Barnard Castle business has been bought by sales director Simon Pelly and senior estimator Jonathan Kirk.

They will take over the daily running of the business and lead on future growth plans.

Previous owners Geoff Simpson and John Allinson, who established the company in 1978, will continue to work on a consultancy basis.

Accountancy firm Tait Walker, commercial law firm Mincoffs Solicitors and HSBC UK worked with the MBO team since last June to ensure a smooth process throughout for all parties.

The firm specialises in manufacturing steel-framed farm buildings and produces a range of commercial and industrial buildings including the Roundhouse livestock building.

Michael Smith, from Tait Walker’s corporate finance team, said: “We are delighted to have assisted Simon and Jonathan on the successful MBO of S&A Fabrications and Roundhouse Building Solutions.

“Through our collaborative approach with Mincoffs Solicitors and HSBC UK, we have played a key part in securing the long-term future of the two established North East companies.

“We are confident the group will thrive under the new management team with support from HSBC. We wish them every success going forwards.”

Chris Hughes, from Mincoffs Solicitors, said: “The team and I were delighted to act for Simon and Jonathan on the management buyout and are proud to have played our part alongside Tait Walker and HSBC UK in delivering the transaction and ensuring continuity for the staff. We wish Simon and Jonathan the best of luck with their future plans for the group”

Mr Allinson said: “Geoff and I are thrilled that Simon and Jonathan have been able to fund this purchase and will continue with the S&A and Roundhouse brand. We wish them every success and we’ll always be here to offer help and support when required.”

David Slane, area director for HSBC UK in the North East, said the bank has great confidence in the new bosses's vision for the future of the businesses and the retention of jobs for the local area.