MBO Engineered in the Midlands

We are delighted that our Corporate Finance team have been instrumental in an engineering solutions business changing hands in a multi-million pound management buy-out funded by Santander Corporate Banking.

The Engineering Technology Group Limited supplies high specification machine tools and fixtures and provides engineering services to companies in the automotive, aerospace, and other specialist manufacturing sectors. With a turnover of around £12 million, the business has enjoyed strong growth in recent years, driven by major capital investment programmes at Midlands automotive companies such as Jaguar Land Rover.

The Group has its headquarters in Southam, Warwickshire and has a separate manufacturing facility in Coventry.

Mr John Temple, operations director, has acquired a majority shareholding in the Group and becomes managing director. The former owner, Mr Paul Rhodes, retains a shareholding in the business and remains a director.

Mr Temple commented: “Paul and I have worked closely together over the last four years to manage the business through the recession and back into growth. With the buy-out now completed we are looking forward to expanding the business further; broadening the product range and increasing the Group’s capabilities in niche manufacturing and specialist engineering.”

The deal was funded by Santander Corporate Banking, Birmingham.

Simon Chapman of Burgis & Bullock Corporate Finance, was lead advisor to management and structured the MBO transaction. The Wilkes Partnership, Birmingham, advised the management team and Wright Hassall in Leamington advised the vendor. SGH Martineau LLP advised Santander.

Speaking about the deal, Simon Chapman from Burgis & Bullock Corporate Finance said: “The Group’s strategy of providing bespoke engineering solutions for advanced manufacturing in the automotive and aerospace industries has enabled it to more than double turnover over the last three years. We are delighted to have assisted in the Management Buy Out of this great example of Midlands engineering success.”

This deal is typical of the type of inquiries being dealt with by Simon and our Corporate Finance team who are finding that the marketplace is much more positive than it has been for a number of years with some good deals completed in 2012 and more already lined up for next year.

If your thinking of buying or selling a business or looking to refinance an existing business, call our Corporate Finance team on 0845 177 5500 or online to see how you can benefit from our innovative approach and proven track record.

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