Dains advises on Management Buy-Out of Wheel Solutions Limited

Deal summary

Dains Corporate Finance is pleased to announce that it has advised on the multi-million pound management buy-out of wheel & tyre specialist Wheel Solutions Limited, with banking facilities provided by Aldermore Bank and Barclays Bank. Steve Budding has sold the business to his management team which is led by his son Josh Budding, who joined the business in 2009 and became Managing Director in 2021.

Cannock-based Wheel Solutions was founded by Steve Budding in 1998 and has since become a leading provider of wheel solutions that encompasses tyres, wheels, tyre pressure monitoring systems and safety wheel bolts. The £10m revenue business supplies a range of industry sectors including touring motorhomes, caravans, high speed trailers, agricultural vehicles and a range of commercial and off-road vehicles. The business services a range of customers including Bailey Caravans, Brian James Trailers, Gateway Chassis Solutions and Ifor Williams Trailers and has developed close trading relationships with many of the sector’s leading manufacturers including Security Tyres, BKT tyres and Deli Tyres.

The difference we made

We spent a considerable amount of time working with Steve over the past few years to develop his exit plans. Through careful planning and creating a deal structure involving a mixture of both cash and deferred consideration we were able to structure a management buy-out which allowed Steve to fully exit and his management team to take the business through its next phase of growth.

We provided advice on the deal structure and managed the fund-raising process, as well as providing the full range of tax advice to Wheel Solutions and its shareholders.

What our client said

Steve Budding said: "Having founded Wheel Solutions over 20 years ago I felt it was the right time to step back and focus on some other investment opportunities I have been considering for some time, and allow the business to move forwards under the stewardship of the existing management team. In facilitating a management buy-out this has enabled us to preserve the company’s independence and its strong positive culture, and provides future security for the whole team. I am confident that Wheel Solutions is in very safe hands.”

"The team at Dains provided me with exceptional advice and guidance throughout the entire process and have achieved a very successful outcome. Their experience and expertise in managing the complex process was invaluable and I would not hesitate to recommend them to others in my position."

What we said

Lead advisor Roy Farmer Head of Dains Corporate Finance added: "Steve has been a valued client of Dains for almost 20 years and we had the privilege of helping him dispose of another of his business interests last year.  We are therefore delighted to have now completed this second transaction with Steve, which will allow him to enjoy his retirement confident in the knowledge that Wheel Solutions will continue its growth strategy under the leadership of the management team.”

Advisers on the transaction

Corporate finance advice was provided to Wheel Solutions by Roy Farmer & Nick Reed of Dains Corporate Finance and tax advice by David Bradshaw and Alexandra Hutchinson of Dains LLP. Legal advice was provided Neil Jones of Ansons and Daniel Keane of Keelys. Funding was provided by Paul Walsh of Aldermore Bank and Neil Barnes of Barclays Bank.