SIX directors of Bowey Construction have completed a management buy out of the company.

The deal marks the final stage of the demerger of the company from the Bowey Group, started two years ago.

The demerger process began in May 2000, when the Bowey Group moved to the Team Valley in Gateshead after selling Bowey Developments.

Following the move, Bowey Construction has gone from strength-to-strength, with order books standing at £25m.

Following the MBO, managing director of Bowey Construction, Len Clark, is keen to press ahead with plans for future growth.

He said: "We have a very committed management team and workforce and it's all systems go.

"There's nothing holding us back. Our customers have shown a tremendous amount of support for this move and are backing us all the way."

He added: "In the last week alone we have picked up a £5.5m education contract from the City of Newcastle, so we couldn't ask for more than that."

Chairman, Peter Gregory, is equally delighted by the company's new status.

He added: "The deal has been struck without the need to use outside finance.

"The newly created company will be owned and managed by the former management team and its trading name will remain unchanged.

"We will be stronger because we are now free to set our own objectives and manage our own corporate strategy."

He continued: "We are determined to continue providing the highest quality workmanship supported by realistic pricing and an open management style.

"This has proved to be a winning combination in the past and with an increased number of partnered contracts, thanks to the many partnering initiatives led by deputy managing director, Ian Walker, I am confident it will prove an equally successful formula in the future."

Bowey was assisted in the transaction by Robert Muckle, solicitors and KMPG Corporate Finance.

Bowey employs a direct workforce of 200, including 16 apprentices and five undergraduate trainees.