Private equity group buys Scottish concrete firm in £5m deal

Private equity group Elaghmore Partners has acquired Scottish concrete mixer firm McPhee Mixers in a deal worth about £5 million.

Founded in 1971, Blantyre-based McPhee Bros designs and manufactures truck-mounted concrete mixer units that it supplies to construction and quarrying clients throughout the UK under the McPhee Mixers brand.

Through the acquisition, Leamington Spa-based Elaghmore said it will provide financial backing to support McPhee Mixers’ growth plans, which include expanding existing sites to help deliver a growing order book, new product development, the addition of sales and marketing capability and geographic expansion to capitalise on the company’s intellectual property.

McPhee Bros will become part of Elaghmore’s Total Vehicle Solutions (TVS) Group, but will continue to operate autonomously as McPhee Mixers with its existing management team. It is expected to expand its headcount of 60 in Blantyre over the next two to three years.

Andy Ducker, founding partner at Elaghmore, said his firm is excited about working with the management team at McPhee.

“McPhee Mixers is a strong, profitable company with a growing order book, a track record of innovation and long-term relationships with some of the biggest names in the UK construction industry,” Ducker said. “It is a valuable addition to our Total Vehicle Solutions Group and expands its capability to offer even more products to its industrial client base from a growing number of sites across the UK.”

Founded by William McPhee, the family-owned business will receive financial backing to further new product development and expand its geographic reach. Sales and marketing capabilities will also be enhanced.

“McPhee Mixers has a long and enviable record of success within the engineering industry, and we have ambitious plans for the future,” managing director Brinsley McFarlane said.

“Working with Elaghmore will help us deliver these, which is demonstrated by their track record in backing companies like SB Components. It is an exciting day for our skilled and dedicated workforce, as well as our customers, as we look to build on our success so far as part of the TVS Group.”

McPhee Mixers is the fourth acquisition made by Elaghmore from its initial private equity fund, Elaghmore I, which closed at the end of 2016, raising £60m.