Arc acquisition is Deal of the Month
ARC Specialist Engineering’s acquisition of Walsall-based manufacturer TBF International has been chosen as our Deal of the Month for July.
Alvechurch-based Arc acquired 100% of the share capital of TBF for an undisclosed sum.
TBF International specialises in tube bending, forming and fabrication. Arc said it will provide its Luton-based subsidiary Toolspec with access to new products, processes and customers whilst TBF will be able to benefit from being part of the larger Arc group.
Arc chief executive, Andrew Richardson said: “We are very focused on making acquisitions in the manufacturing sector and are delighted to have completed this transaction.
“Our subsidiary Toolspec has traded very successfully since the creation of the Arc Group in April 2013 with strong double digit revenue growth in the first 12 months of trading.
“Working alongside TBF, with its diverse customers and products and its high quality team will further enhance Toolspec’s growth opportunities.”
Adam Bradley, one of TBF’s exiting shareholders, said: “Our primary concern was job security for our 19 staff and in Arc, we believe we have found the ideal owner to take TBF to the next level.”
Arc was advised on the transaction by John Heaton at Higgs & Sons and the vendors were advised by Clare Lang at fellow Black Country law firm George Green.
Arc Specialist Engineering was formed in March 2013 to acquire trading assets from Metalrax Group – which had entered administration. It took over the UK businesses Cooper Coated Coil, Toolspec and Weston Body Hardware, as well at the US-based company Post Glover Lifelink.
The group says its strategy is to grow, both organically and through acquisition, a portfolio of cash-generative specialist engineering firms delivering high return on assets.
Commenting on the Deal of the Month choice, TheBusinessDesk.com editor Andy Coyne said: “It was a sad day when Metalrax went under but Arc has risen phoenix-like from its ashes and is slowly but surely creating a sustainable manufacturing business, based on a number of underlying specialist engineering firms.
“This deal points to a growth strategy based on selective acquisitions and also gives a new lease of life to TBF.
“And the fact that the deal was expertly handled from both sides by those Black Country powerhouses George Green and Higgs & Sons makes it even more satisfying.”
