Carroll & Meynell acquired by Oxygen Partners

• Transaction sees transformer manufacturer return funds to creditors as it successfully completes CVA process

• FRP supervised CVA and agreed a variation with creditors to enable an early distribution and facilitate the transaction with Oxygen Partners

Carroll & Meynell, the Stockton-on-Tees-based transformer manufacturer, has secured a majority equity investment from Oxygen Partners.

Established in 1970, Carroll & Meynell designs and manufactures high quality transformers and coil wound products that support the construction, transport, mining and power distribution sectors. The business employs 38 people at its site at the Durham Lane Industrial Park.

The transaction enables Carroll & Meynell to exit its Company Voluntary Arrangement (CVA)– an insolvency process used to repay creditors. The CVA was approved in 2020 and has been supervised by Iain Townsend and Martyn Pullin of specialist business advisory firm FRP, which also marketed Carroll & Meynell for sale.

Iain Townsend, Director at FRP, said: “The CVA process provided vital support for Carroll & Meynell as it went through a challenging period. But, with more than half a century of experience in its field, the business has remained resilient and ultimately attracted interest from investors. Oxygen is a great fit and will provide the specialist support that can take thebusiness into a new era.”

Angela Torrance-Meynell, Director at Carroll & Meynell, said: “We’re thrilled to be working with Oxygen who can help us further strengthen the business for the future and drive investment, which will build on the incredible talent we have in our team, our rich manufacturing pedigree, truly world class offering and Mike Meynell’s legacy.”

Steve Benger, Partner at Oxygen, and who previously worked in the electricity supply industry, will join the business as MD. He said: “Our investment in Carroll & Meynell underlines our commitment to UK manufacturing. The business has a rich history both locally and nationally, boasting several market leading products, so we look forward to building upon this with Angela and the team. We would also like to pay tribute to all the hard work of Mike Meynell, who’s retiring after 52 years at the helm of the business.”

Oxygen Partners was advised on the deal by PDT Solicitors. The business was advised by Punch Robson. Debt finance facilities were provided by Close Brothers Invoice Finance.