West Midlands aluminium supplier looks to new chapter after management buyout

LA Metals is a supplier and fabricator of aluminium extrusion products, whose clients range from Next and Burger King. Founded in 1987, the business started out selling aluminium materials business to business and offering custom fabrication. After a period of growth, LA Metals added to their business to business same day offering, launching Aluminium Online in 2022 with the aim of selling shorter and bespoke lengths of aluminium extrusion directly to consumers.

The business, based out of two facilities in Smethwick, is now stepping into a new chapter of leadership after a management buyout from its previous owners, supported by a loan from Allica. The new owners of the business, finance director Justin Bates and operations director Chris Grierson, are taking the reins backed by years of direct experience, having worked at LA Metals for 11 and eight years respectively.

The Growth Finance loan from Allica Bank has supported the acquisition alongside providing working capital to the business for continued growth. Looking ahead, the business plans to invest in new machinery to increase its production capacity and offer new services, such as a laser cutter to add value by offering bespoke components to clients. The directors also have plans to expand into new, bigger premises and increase their workforce as a result. 

"Justin and I are delighted to finally get started on this new chapter of growth for the business, something which has been in the pipeline for a long time, and we have bold plans to expand the business’s offerings so we can essentially become a one-stop shop for our customers," said Grierson. 

"We initially thought the buyout was likely to be a tall order - but by working with Mike at Odyssey, who introduced us, and Allica, they made it so easy from start to finish and there has always been someone to speak to when we’ve had questions."

Amy Beasley, regional lead for growth finance at Allica Bank, has been assisting the business with the management buyout. "Justin and Chris have such a clear vision for where they want to take the business under their leadership, and it has been a joy to help make this acquisition a reality. LA Metals is a prime example of an established business quietly working away to provide an essential service and we at Allica are proud to support them through that," she said. 

Management were advised by Mike Yiannis at Odyssey Corporate Finance, Legal Clarity provided legal support to both management and the vendors. Sanderson Weatherall provided asset due diligence. Victoria Baker at Pinsent Masons provided bank legals. 

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