Venture capitalist acquires £11m Birmingham engineering firm

An £11m-turnover Birmingham engineering business has been acquired by renowned venture capitalist Jon Moulton in a new deal.

Supported by senior debt and working capital facilities from Clydesdale & Yorkshire Bank, Shard End-based Vertik-Al has been acquired by investment funds led by Perscitus on behalf of the family office of Mr Moulton – who was once close to acquiring MG Rover.

Vertik-Al is a market leader in the UK aluminium powder coating industry. It was the first to introduce vertical powder coating of aluminium in the UK and has remained a leader in this process. Its customer base comprises aluminium extruders and system design fabricators.

The firm has invested significantly in advanced plant and equipment and has one of the few vertical powder coating lines in the UK.

Powder coating represents over 15% of the total industrial finishing market and is used on a wide array of products for a high-quality, durable finish.

Following the transaction, Graham Brown has been appointed managing director of the group, with Angus Mackie becoming Group Financial Director.

For the bank, the transaction was led by Senior Directors of the Corporate and Structured Finance team, Ian Howey and Ian Mansell.

Mr Howey said: “It is extremely satisfying to be able to assist in the evolution and development of businesses like this which have been in family ownership since they were established.

“The growth and success of regional economies is critical to the success of the UK economy and we look forward to working with the new management team as the companies go from strength to strength.”

The bank was advised by James Dyson and Lee Clifford, of law firm Freeths. Financial due diligence was provided by Julian Clough and Adam Foster, both of Mazars.