Construction firm in MBO

A SCOTTISH construction firm has changed hands in a £1 million deal. Glasgow-based McKean Group has been acquired by group directors David Noar, and Mark Fallon, who completed the management buyout with the backing of founding family member, Richard McKean.

The firm has 250 employees across its three divisions – McKean & Company and Hudson Group in Glasgow, and Mayfield Construction in Liverpool.

Mr Noar, who started out as a general manager at Mayfield Construction in 2000, said: “Over the past few years we have been driving growth upwards. The buyout is part of our strategy to build on the sustained success of the past few years.”

The group’s turnover increased from £21m in 2005 to £28.5m in 2006. Full year results for 2007 are due to be announced shortly. Mr Fallon, who joined Mayfield Construction as

Buyers David Noar (left) and Mark Fallon

commercial manager in 2001, commented: “In spite of an anticipated downturn in the current economic climate, we are progressing well and our forthcoming results for 2007 will show further advances.”

Richard McKean, the group’s chairman and the third-generation of the founding family, said the buyout had been part of his succession planning for the business in the absence of any other family members to take up the reins. He will retain a minority share holding and will continue as group chairman.