Anti-corrosion coatings business sold
A SPECIALIST coatings business which helps aerospace manufacturers prevent corrosion has been sold for more than £2m to a US industrial group.
In a deal led by Bolton-based KBS Corporate, Wrexham-based KG Coating has been sold to SPS Technologies, the £80m turnover UK subsidiary of Oregon-based global corporate, Precision Castparts Corporation.
PCC has a strong UK presence and made the acquisition in order to have complete control of its supply chain.
Founded in 1995, KG Coating applies aluminium and polymer coatings for corrosion prevention and dry lubrication. As well as aerospace it is active in the defence, industrial, oil and gas, electronics and automotive sectors.
KBS said interest in the business, which has sales of £1.45m, was high. There was 30 interested parties and five offers. Among the potential acquirers were four overseas trade buyers from the US, the Netherlands, India and France.
Guy Haynes, senior deal executive at KBS Corporate, said: “Our client, Gavin Williams, had previously purchased the business in 2013, and decided to investigate the option of selling after noticing improving market conditions within the aerospace industry.
“The deal with SPS offered Gavin a significant return on his original investment, and we are delighted to have played our part in making this possible.”
Legal advice was provided by Stephen Jarman of Taylors Solicitors in Manchester. SPS Technologies was advised by Leeds firm Walker Morris.
