Gateshead-based marine civil engineering specialist Southbay Civil Engineering has been acquired by Cheshire's Orange UK Holdings Ltd (OUKH) in a deal aimed at supporting the business's growth. The company, which has a turnover of £40m and specialises in marine and heavy civil engineering, was purchased for an undisclosed sum from founding shareholders Gordon and Gill Green.
Acquisition and Leadership Continuity
Under the transaction, OUKH acquires the business from its founders, with Southbay continuing to operate under its existing senior management team, led by managing director Paul Stephenson and operations director Antony Ballantyne. This arrangement is intended to provide continuity for employees, customers, and suppliers.
Founded in 2001, Southbay delivers technically complex projects across ports, harbours, rivers, and coastal environments throughout the UK and internationally. The company has recently expanded its international activities through its first overseas project, a major marine infrastructure scheme in the Falkland Islands.
Founders and Management Comments
Mr Green said: “We are proud to have started the business 25 years ago and are confident that the new owners understand what it takes to continue such a business and to maintain the management style that has been successful over that period.”
Mr Stephenson said: “Southbay has built its reputation over many years through the expertise and commitment of our team and the strong relationships we have developed with our customers, partners and supply chain. OUKH shares our belief in the strength of the business and our ambition for its future.”
He added: “Importantly, this transaction provides continuity for our people and customers while giving us the support to build on what we have achieved and pursue further opportunities in the UK and internationally. Antony and I are looking forward to working with OUKH as we continue to develop the business, while maintaining the standards, relationships and approach that have been central to Southbay’s success. We have and will remain a civil engineering focused business.”
Advisers and Deal Support
Newcastle-based RG Corporate Finance (RGCF) advised Southbay’s shareholders on the transaction, led by Carl Swansbury, partner and head of corporate finance, and supported by Tom Cosby and Euan Mulholland. RGCF’s transaction tax team, led by Simon Whiteside and Simon Hopwood, provided tax advice to the shareholders. Legal advice was provided by Mark Lupton and Alana Pearson of Beyond Corporate, while Graham Smith of Grosvenor Accountants provided accounting support.
OUKH received legal advice from Mills & Reeve, and Saffery, led by Erin Cadden, performed financial due diligence.
Mr Swansbury said: “Southbay is an excellent business that has established a strong position within a specialist area of the civil engineering market. It has an experienced management team, an outstanding track record of delivering technically demanding projects and longstanding relationships with customers and partners.”
He added: “A key part of this process was identifying a buyer that recognised those strengths and shared the management team’s ambitions for the business. OUKH understands what has made Southbay successful and is committed to providing the continuity and support that will enable Paul, Antony and the wider team to build on those foundations and take the business forward.”
