A Northampton-based corporate finance firm has advised on the sale of a specialist roofing supplier in a deal that reflects growing investor interest in businesses positioned for a recovery in the UK housing market.
Watersheds, headquartered in Northampton, supported the acquisition of European Slate Company Limited (ESCO) by Euston Ventures Ltd, bringing a long-established importer and distributor of natural roofing slate into new ownership.
The transaction comes against a backdrop of continued pressure in the construction sector, with housebuilding activity yet to fully recover. However, government ambitions to deliver 1.5 million homes over the next five years, alongside proposed planning reforms, have begun to shape expectations of increased demand across the building supply chain.
Within that context, Watersheds identified ESCO as a business likely to benefit from any sustained improvement in residential development.
ESCO sources natural slate from quarries in Spain, Brazil, Wales and Malaysia, supplying builders’ merchants across the South of England and the Midlands. The company operates in a market where product consistency and supply reliability remain key factors for contractors and developers.
The buyer, Euston Ventures, has an existing presence in the roofing sector through its ownership of European Plastics, a manufacturer of rubber roofing components. The acquisition is expected to create opportunities to align capabilities across complementary parts of the supply chain, although the extent of any integration has not been disclosed.
John Stopher, partner at Watersheds, said the timing of the deal reflected a balance between current market conditions and longer-term positioning.
“A business sale can be both complex and demanding,” he said. “Our role is to support clients through that process, ensuring their objectives are understood while managing the transaction in a structured way.”
ESCO’s owner, Mike Farelly, who has spent his career in the slate industry, built the business alongside a long-standing team. He said securing the right buyer, particularly one able to support both the business and its employees, had been a priority.
“It was important to me that the business was placed in safe hands and that the team would have the opportunity to continue developing,” he said. “Watersheds approached the process in a clear and straightforward way.”
Professional advice on the transaction was also provided by Thrings and Cazenove Capital.
While there are early signs of cautious optimism in parts of the housing market, activity remains uneven. Deals of this kind suggest some investors are willing to take a longer-term view, backing businesses that could benefit if construction demand strengthens over the coming years.
