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DEALMAKERS
IN ASSOCIATION WITH:
By Ged Henderson
FOX STILL IN THE HUNT
Paul Fox is in no doubt that the injection of private equity into the haulage, plant hire and aggregate group that bears his family name will turbocharge its already impressive growth journey.
In early September it was announced that the Fox Group had been acquired by an affiliate of middle- market PE firm Stellex Capital Management.
With offices in New York, London, Pittsburgh and Detroit, Stellex has more than $2.8bn in Assets Under Management.
Blackpool headquartered Fox Group is in its fourth generation of family leadership and has been in operation since 1932.
It provides services to the construction and infrastructure industry across the UK, including muck-away, haulage of aggregates, production of recycled aggregates, waste recycling, quarry operations and ready-mix concrete production.
The business has sites and depots across the UK and a 550-strong workforce. It has made the headlines in recent years through an ambitious buy to build strategy.
Fox has also transformed into a multimodal transport operation, with a railhead in Leyland and a maritime division based at the Port of Lancaster, developments which have moved the business into road, rail and marine.
Paul, who remains as Fox Group chief executive, says the Stellex deal will allow it to continue on its journey with renewed vigour.
There is a clearly identified plan, which involves both organic and inorganic growth and Paul says: “The deal will help us get to where we want to be.”
That means more acquisitions and major capital expenditure projects. These include prospective investment in an asphalt plant in Leyland and upgrading its wash plant on the outskirts of Preston, which should allow it to divert increasing amounts of waste from landfill.
The acquisition also means that Mark Joel and Andy Swinnerton, past managing directors of Lafarge Tarmac and Aggregate Industries respectively, have joined the management team. Mark arrives as company chair, with Andy taking on the chief operating officer’s role.
Paul says: “They are a couple of industry heavyweights and will provide the help we need to get to the next stage in our development. The
generate synergies between all parts of the business. Paul says: “We believe we are now in a position to transform the company into a fully integrated circular construction materials business, delivering sustainable solutions to the construction industry and helping to decarbonise the supply chain.”
He describes signing the deal with Stellex as a “momentous day” and he explains: “I started thinking about what I wanted to do a couple of years ago. And then I didn’t do anything for 12 months, apart from think. I thought about what I wanted do, where I wanted to take the business.”
Discussions with a senior figure in corporate finance at Grant Thornton, who Paul knew,
It’s a pretty intense process and you’re trying
to do the day job at the same time. People talk about ‘deal fatigue’ and I now know what they mean, because you are doing so much
value they will add will be immense.”
The Fox Group has expanded geographically and extended its operations to become a more integrated construction materials provider as a result of several acquisitions in recent years.
The Stellex deal also includes Fox Group merging with J A Jackson, a well-known quarry operator and producer of recycled aggregates and ready mixed concrete. The aim of that “strategic integration” is to
followed and “things developed from there”.
A trade sale was ruled out. Paul says: “We thought about either flotation or Private Equity. In the end we didn’t like the idea of a flotation; it wasn’t for us.”
Looking back at doing the deal he says: “It’s a pretty intense process and you’re trying to do the day job at the same time. People talk about ‘deal fatigue’ and I now know what they mean, because you are doing so much.
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