One of Chesterfield’s oldest firms has struck a deal to take over and join forces with another leather producer to create a combined turnover exceeding £6million.
Joseph Clayton and Sons Ltd of Chesterfield concluded a deal on April 24 to take over JE Sedgwick and Company Ltd to become the largest vegetable tanning group in the UK.
The two businesses will continue to run as separate units - retaining the existing management teams, but Clayton’s revealed the deal will create an operation with a combined turnover exceeding £6m.
Ian Walker, chairman and managing director of Clayton’s, said: “Our product ranges only have a narrow area of overlap. Clayton’s produces a wide range of bespoke leathers with a variety of end uses while Sedgwick’s focuses on bridle and saddlery leathers. This is not an exercise in consolidation but in growth for two long-standing businesses.”
All members of staff are to be retained, creating a joint workforce of around 60 while certain functions such as finance, purchasing and sales will be co-ordinated.
The acquisition - financed by Lloyds Bank Commercial Banking - will make Clayton’s the largest vegetable tannery group in the UK and the company predicts an increase in turnover of up to 25 per cent.
Richard Farrow, current managing director of Sedgwick’s, said: “We are delighted with this outcome. Clayton’s 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.”
Stephen Denham, of Lloyds Bank Commercial Banking, said: “Sedgwick’s and Clayton’s 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.”