Bank loan paves way for management buy out at Cheshire firm

A Cheshire-based engineering firm has been bought out by its managing director with the backing of a seven-figure funding package.

 
The management buyout sees Peter Smith, who has worked at the business for over 28 years, become the new owner of GU Cutting and Grinding Services.

 

Peter worked with HSBC to secure the MBO after the Poynton-based firm’s former owners sought to sell their engineering division.

As a result of the buyout, GU Cutting and Grinding Services expects to expand its portfolio of engineering services to the nuclear sector, commercialise its Garnet recycling machine and create a dedicated sales and marketing team.

Peter Smith said: “HSBC’s financial backing and guidance gave us the means and confidence to undertake this buyout and we’re excited to take the business to the next level, while continuing the great work of the former owners.”

Stephen Wright, HSBC’s Relationship Manager for Greater Manchester, said: “HSBC is committed to supporting the growth of local businesses in the North West, so we are pleased to have backed Peter in his management buyout.

“With fresh ideas and an ambitious growth strategy, the business is well-positioned to capitalise on the UK’s buoyant engineering sector.”

Established in 1958, GU Cutting and Grinding Services employs 22 people at its 35,000 sq ft facility in Poynton.

The business, which was formerly part of a diverse international Plc, is a market leader in waterjet cutting, profiling and precision grinding, serving the aerospace, automotive, nuclear, marine and commercial catering industries in the UK.

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