Deal Engineered in the Midlands

A Warwickshire-based engineering solutions business has changed hands in a multi-million pound management buy-out funded by Santander Corporate Banking and advised by Midlands professionals.

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, with the debt facilities being arranged by Sally Beavan. Simon Chapman of Burgis & Bullock Corporate Finance, was lead advisor to management and structured the MBO transaction. Rick Smyth of The Wilkes Partnership, Birmingham, advised the management team and Robert Lee of Wright Hassall in Leamington advised the vendor. David Doogan of SGH Martineau LLP advised Santander.

Sally Beavan commented: “We are delighted to have provided a funding solution to an existing client which will help to further fuel its ambition. John and his team have demonstrated strong management through recent years and have the ability to significantly grow this business – our funding will enable this potential to be realised.”

Simon Chapman added: “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 MBO of this great example of Midlands engineering success.”

The financial terms of the transaction are not being disclosed.