Mike Redwood announces in Bucharest the Clayton & Sedgwick deal of two top vegetable tanners combining forces
Clayton & Sedgwick two top vegetable tanners combine forces
Joseph Clayton and Sons Ltd of Chesterfield have concluded an amicable arrangement to take over the assets and business of J.E.Sedgwick & Company Limited in a deal dated the 24th April, 2015.
This will create the largest vegetable tanning group in the UK.The acquisition was initiated to fit with the long term plans of the shareholders and senior management of Claytons.
While the two businesses will continue to run as separate units, retaining the existing management teams, the deal will create an operation with a combined turnover exceeding £6 million. All members of staff will be retained from each company, creating a joint workforce of around 60.
Certain functions such as finance, purchasing and sales will be coordinated to ensure the enlarged organisation will be better placed to support the powerful brands of Sedgwicks and Claytons in the marketplace.
The acquisition, which was financed by Lloyds Bank Commercial Banking, will make Claytons the largest vegetable tannery group in the UK and is predicted to increase turnover by up to 25 per cent.
Ian Walker, Chairman& Managing Director of Claytons said: "While it is easy to see us as two very similar vegetable tanning units in fact our product ranges only have a narrow area of overlap.
“Claytons produce a wide range of bespoke leathers with a variety of end uses while Sedgwicks focus on bridle and saddlery leathers. This is not surprising given that Claytons have developed from an industrial leather background while Sedgwicks have developed out of an equestrian one; our processes, leathers and customers are distinct. So this is not an exercise in consolidation but in growth for two longstanding businesses. We are also pleased to be manufacturing in a location near Walsall, the important centre of UK saddlery and leather goods."
"We are delighted with this outcome for our business" said Richard Farrow, the current Managing Director of Sedgwicks. "Claytons understand our world of vegetable tanned leathers and have a similar heritage to ours. There could be no better custodian to pass our business to."
Richard is the grandson of one of the early owners and managers of J.E.Sedgwick and with his fellow shareholders has been looking at the future of the company as he comes towards retirement. He will remain as Managing Director and also join the board of the expanded group.
Stephen Denham, relationship manager for Lloyds Bank Commercial Banking, said: “Sedgwicks and Claytons are an ideal fit for one another due to the nature of their work, and this is a transformative deal for both companies that should provide a solid platform for future growth and expansion.
“Our specialist manufacturing teams regularly work with firms to ensure that they have access to the support and guidance necessary to continue to drive their growth, and also receive training from the University of Warwick to ensure that they fully understand the issues faced by firms in the sector.”
A Future for European Leather!
In January 2015, COTANCE and industriAll-European Trade Union kicked-off a new Social Dialogue project entitled « A Future for European Leather! ». National partners include leather associations and trade unions in France, the UK, Romania, Portugal, Spain, Germany, Austria, Sweden and Italy.
Through the organisation of 4 European Seminars in 2015 and one Final Conference in early 2016, the Social Partners intend to strengthen their dialogue addressing issues of common concern in the areas of Social Affairs, Trade, Industry and the Environment.
Imagining what the European Leather sector could look like in the year 2025 will inspire their discussions. Looking up to a not too distant future, the project aims to identify challenges and opportunities for Leather made in Europe. Assisted by experts, the sector’s Social Partners will come up with new intelligence that will bring about a deeper understanding of the issues at stake in each of the policy areas.
The Seminars will feed the discussions in the sector’s Social Dialogue Committee where the Social Partners will address joint objectives and recommendations in crucial areas of their industrial strategy.
The 4 Seminars will be hosted each in a different European location starting with Bucharest, Romania, where APPBR will organise the first encounter on the theme “Industry” (24 April). It will be followed by the Seminar on “Social Affairs”, organised by FFTM, France, on 18 June. After the summer break, two more events will be organised; one by APIC, Portugal (October) and the other by UKLF, UK (December).
6 February 2015