A Sheffield ironmongers which supplies trade clients nationwide is seeking further growth after a buy-out by a long-serving staff member.
Sheffix has been acquired by Brad Wheeler, who started as a school leaver 20 years ago and has run the business for the past four years. The deal was backed by a £300,000 loan from NPIF II – Mercia Debt Finance, which is managed by Mercia Business Loans as part of the Northern Powerhouse Investment Fund II (NPIF II).
The buy-out provides an exit for Norman and Elaine Pearce, who founded the business in 1984 selling ironmongery and hardware to mainly domestic customers. Over the past decade Brad has led a sales drive to expand the number of trade clients and the company now sells to joiners, builders and fire door specialists throughout the country.
Sheffix, which currently employs five staff, has almost doubled its turnover in the past three years. Following the buy-out Brad, 36, plans to continue growing the customer base, expand its product range and introduce locksmith services for local clients. He aims to create two to three new jobs in the next three years.
Brad Wheeler, Managing Director, said: “A small business has to offer something different if it is to compete with the big players. At Sheffix, it is our service and knowledge that set us apart. Clients know they can pick up the phone to us at any time and we will select the right products and quickly despatch them.
“The buy-out is a really proud moment for me and my family. I’ve always treated the business as if it were my own in terms of my growth ambitions, but being the business owner is an added incentive to take it forward.”
Ian Whitworth of Mercia Business Loans added: “Brad’s enthusiasm has helped to transform Sheffix from a ‘corner shop’ business into a national supplier. We are pleased to help him take ownership of the business and pursue his expansion plans.”
Sarah Newbould, Senior Investment Manager at the British Business Bank said: “The Northern Powerhouse Investment Fund II is helping ambitious businesses like Sheffix to achieve their growth plans, and it’s fantastic to see Brad building on the company’s strong foundations. Through investments like this, we’re helping businesses pursue new opportunities, create jobs and contribute to sustainable economic growth across the North.”
Chris Mangle of Custom Business Finance provided fundraising advice to the company. James Burdekin, partner at MD Law in Sheffield, provided legal advice to Sheffix while accountants Brearley and Co were corporate finance advisers.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local investment opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
ENDS