Singapore metals trader swoops for £70m turnover Walsall steel firm

Colin Mills ( CEO) , Tarlok Singh ( Chairman) , Ravi Trehan ( Aar Tee owner)

Aar Tee, a global metals trading business with hubs in London, Dubai, Hong Kong and Singapore, has acquired Walsall-based Acenta Steel, the UK’s largest independent processor and distributor of bright and engineering steel bars, for an undisclosed price.

Acenta Steel can trace its roots back to the 19th century and supplies steel products to nearly 5,000 customers worldwide.

Headquartered in Willenhall, Acenta Steel achieved turnover of £68.4m and pre-tax profits of £2.6m in the year to December across its six sites in the UK which employ 350 staff.

Its products are used in precision-finished material for component manufacture in wide ranging and demanding engineering applications such as engine, driveline and suspension parts, hydraulic valves and household goods.

Singaporean-registered Aar Tee said the acquisition provides it with a market-leading platform and a strong brand name to help establish its industrial presence in the UK while it continues to leverage its strong trading base in metals and raw materials for the steel sector.

Ravi Trehan, founder and chairman of Aar Tee said: “Our investment in Acenta Steel is a new milestone for the Aar Tee Group. We are very excited to be entering the manufacturing sector in the UK and have big ambitions to grow in this space through investment and innovation.”

He said this industrial investment had been inspired by the success of Sanjeev Gupta’s Liberty House Group – also a worldwide metals trading business which has now become Britain’s largest and fastest-growing industrial employer.

Trehan said: “I would like to thank Sanjeev Gupta for sharing with us his vision for the regeneration of UK manufacturing.”

Trehan announced that the senior Acenta management team would continue to drive the business forward under the new ownership, with Colin Mills becoming CEO and Tarlok Singh becoming executive chairman.

He said: “Tarlok and Colin have led the business through challenging periods for the steel sector and it is now in a great position to achieve long-term sustainable growth.”

Singh said: “Having spent over 40 years with Acenta Steel and its predecessors, I am absolutely delighted to take this prestigious business into new ownership that will have the resources to allow it to flourish, fulfil its potential and become a world-class company. We have excellent relationships with our business partners, which will continue to thrive under the independence and strength of the Acenta brand with a clear focus towards its global customer base.”

Mills added: “I’m thrilled to be taking on the lead role while continuing my partnership with Tarlok. Under Aar Tee ownership, the long-term prospects for the business are greatly enhanced and I look forward to implementing the ambitious industrial strategy with Aar Tee. We have a strong market position and retain a financially solid and independent platform from which to grow in the future.”

The Aar Tee investment was led by Hitesh Pattani, CEO Aar Tee UK. Aar Tee was advised by Eversheds and Sutherlands (Robin Johnson) and the Acenta team were advised by DWF (Mark Gibson).

 

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