Engineering firm stokes up fire with first acquisition

AN engineering and project management consultancy has made its first acquisition with a swoop which could help the company double its £10m turnover.

Otto Simon Holdings, based in Cheadle, near Manchester, has completed an asset purchase agreement with KPMG, the administrators of Scottish engineering company John M Henderson.

The deal sees Otto Simon acquire John M Henderson’s coke oven machinery technology and expertise, which ensures the long-established brand survives.

Otto Simon has re-employed some staff from John M Henderson at a new office in Forfar, where they will continue to design coke oven machinery for projects worldwide.

Steve Haywood, chairman of Otto Simon, said he believed the acquisition would add between £5m and £10m to his company’s annual revenues.

Nigel Barratt, head of HURST Corporate Finance, advised Otto Simon on the deal. Rob Loveday, a partner at Manchester law firm Lockett Loveday McMahon, provided legal advice.

Mr Barratt said: “We have advised Otto Simon since Steve’s management buyout in 2008 and it is great to see the company develop further.

“Otto Simon now has two globally-recognised brands in a valuable market, and I know Steve and his team will make a great success of this acquisition.”

John M Henderson, which went into administration last October, has been involved in more than 200 coke oven machinery projects worldwide over the years. Coke ovens convert coal into coke and are used in industries such as steel manufacturing.

Otto Simon specialises in engineering consultancy services as well as design, procurement and project management for schemes in the coke and steel, energy, renewables, water and petrochemical industries.

The company, which was established in 2004, employs 80 staff across its headquarters in Cheadle and an office in Rotherham.

Clients include Tata Steel, United Utilities, Yorkshire Water and Thyssen Krupp Industrial Solutions.

Mr Haywood said: “There are great synergies between Otto Simon and John M Henderson and I am confident this acquisition will prove to be of great benefit in expanding our business both in the UK and overseas.

“The combined skills, knowledge and expertise of the staff, together with a shared culture of providing engineering excellence, innovation and high levels of customer service, will make us a much more powerful proposition in the coke and steel sectors.”