Major deal creates £250m manufacturing group
LEADING automotive supplier Sertec has concluded a major acquisition taking over Birmingham-based WILD Group in a deal that creates a £250m turnover business with 10 manufacturing plants across the UK, Germany and Hungary.
Coleshill-based Sertec said the deal represented “a transformational opportunity” for the business, enhancing its product capabilities, customer portfolio and providing an international platform at the heart of the European automotive industry.
The terms of the deal have not been disclosed but both Lloyds Banking Group and the Business Growth Fund have agreed to extend their investment into the business.
They have been supported by Santander, which is making its first syndicated contribution into Sertec’s growth. In addition, K&H provided local asset finance in Hungary.
The WILD group of businesses specialise in the manufacture of high quality technical components and assemblies for Automotive OEMs and Tier 1 suppliers.
As such, they are a good fit with Sertec – a leading supplier to the automotive sector, especially to Jaguar Land Rover.
Specifically, WILD’s expertise is in precision components, fine blanked components, wire forming, wire seat frames, spring parts and complex stamped assemblies. The business enjoys a leading market share in the supply of wire seat frames to the UK automotive industry.
Whilst Sertec currently manufactures wire products, this is not its core capability and the acquisition of WILD will significantly enhance the company’s offering in this area as well as extend its customer base.
Dave Steggles, Group Managing Director, Sertec, said: “This is probably the most important acquisition in Sertec’s history, not only because of the size of the business, but because of the new opportunities it presents. The expertise and experience of the WILD management team will be invaluable in our future growth plans.
“WILD’s skill set complements ours and together we can develop an even broader engineering expertise to offer our combined customer base. Whilst we can now provide our own customers even greater capability on wire and spring products.”
He said that in addition, Sertec’s continuing development and knowledge in lightweight technologies would be enhanced by the engineering resources now available to it at WILD’s facility in Germany.
The deal marks the latest phase of Sertec’s remarkable recent growth. Earlier this year the firm announced it was investing some of the £20m it secured from Lloyds and the BGF to purchase a new logistics base.
The Midlands deal team at PWC acted as both lead advisor on the acquisition and provided debt advisory support for the refinancing with Weightmans providing legal advice to Sertec. Quercus & Penningtons acted on behalf of AWC Industries (WILD).
Matt Waddell, partner and head of PwC’s deals business in the Midlands, said: “We’re proud to have supported Sertec on this landmark acquisition. There was a clear strategic fit with WILD, which will broaden Sertec’s product capability and give them access to strategically located manufacturing plants at the heart of Europe’s automotive supply chain.
“We look forward to working with Sertec as they realise the benefits and significant growth potential of this transaction.
“This transaction demonstrates the continued strong appetite for Midlands based manufacturing businesses to invest in strategic assets both domestically and in Europe. There were fears the EU referendum could lead to inertia in the deals market, but our experience in the Midlands is that there is still an appetite for deals that deliver real value to all parties.”
A team from Gateley’s Birmingham office acted for both Lloyds Banking Group and Santander on the deal. The team was led by Banking partner Carol Betts, assisted by Alison O’Kelly, Banking trainee solicitor, Jonathan Horne, Banking paralegal and Chris Reed, Corporate partner.
