By the mid-1860s conditions were ripe for the reconstruction of the leading Sheffield firms. They needed large injections of capital to finance expansion. External circumstances were favourable, for 1862, 1863 and 1864 had been the best three years to date for exports of iron and steel. Finally the Companies Act 1862 provided the legal framework for the formation of joint stock, limited liability companies. An interesting result of their opening to wider participation was an influx of Manchester capital into the Sheffield industry.

In 1864 both John Brown and Charles Cammell were converted into public limited companies, each with a capital of £1 million. On 24 February Cammell asked the Manchester financial agents, Chadwick, Adamson and Company, to act for him in selling his company to a group of seven purchasers, six of whom resided in Manchester. Agreement was reached on 16 March and less than four weeks later the memorandum of association of Charles Cammell and Company Ltd was drawn up. The new owners acquired the Cyclops steel spring and ironworks, the Grimesthorpe works (then building) and the smaller operation at Wadsley Bridge works, as well as ‘purchasing or otherwise acquiring the business, stock in trade, goodwill, patents, patent-rights, contracts in hand, effects and premises connected therewith’. Cyclops was by far the biggest unit, valued later that year at £651,000.

The first board of directors contained 11 men. Three resided in south-east England, one was from Doncaster, another was from Liverpool and four were Manchester-based. Cammell received £200,000 for use of his name, goodwill and patents and was appointed chairman, in the first instance for five years, but in fact for the remainder of his life.