Two ambitious directors at McKean Group, which carries out both principal and specialist contracting works within the construction industry, have completed a vendor instigated management buyout of the Glasgow-based organisation for a sum approaching seven figures.

Group directors, David Noar, and Mark Fallon, completed the takeover of McKean Group with the backing of founding family member, Richard McKean.

The duo said the buyout of the firm, which has 250 employees across its three divisions - McKean & Company and Hudson Group in Glasgow and Mayfield Construction in Liverpool - would help propel it to its next stage of growth, building on a robust recent performance.

Dave 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 and take the company into an even greater phase of growth in the coming years. This is a very exciting time for the business and our people.

"With an emphasis on organic growth, further controlled expansion is planned. The Group is keen to identify other opportunities that will give the company even greater scale and industry expertise," said Mr Noar.

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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. In its March trading update, the Group said that despite a fiercely competitive market all divisions were performing well.

Mark Fallon, who joined Mayfield Construction as 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."

He said that the buyout provided the opportunity to build on the strong foundations laid in recent times by the Group, which was established in Scotland in 1918 as McKean & Renwick, Railway and Public Works Contractors.

"In the past two years we have carried out or about to start a number of multi-million pound projects across both sides of the border. These include a civils contract at Midlothian Schools in excess of £10m, a £6.2m new office block for Neptune Developments in Liverpool and a £7m contract to provide industrial concrete flooring in Birmingham's Queen Elizabeth Hospital - one of the biggest composite flooring schemes in Europe.

"We are also working on two streetscape projects, including a £3m contract for Renfrewshire Council and the multi award-winning £6.2m scheme at Focal Point, a partnered contract with St. Helens Borough Council.

"We have built a strong track record and we believe there are even better times ahead for the Group. The buyout gives us a great opportunity to build from a position of existing strength," added Mr Fallon.

The buyout ends 90-years under the control of the McKean family.

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 organisational reins.

Mr McKean, who joined the company in 1969, will retain a minority share holding and will continue as Chairman within the Group.

He said: "Over the years, I've worked closely with Dave and Mark and know that they're very experienced industry operators. They are more than capable of taking McKean Group to even higher achievements in the coming years and I'm confident that the business is in safe hands going forward."

(GK/JM)