Private equity group swoops for £40m-turnover manufacturer

Private equity firm Watermill Group has snapped up Andaray, a £40m-turnover Sheffield manufacturing group.

As part of the deal, all Andaray’s subsidiaries, including Cooper and Turner, a manufacturer of industrial fastenings for the wind, construction, rail and tunnelling sectors, are being acquired by the Massachusetts PE house.

Cooper & Turner began life in the 1800’s when Joseph and James Turner founded a gun barrel business in Birmingham and was amalgamated with Henry Cooper & Co in 1912 when production moved to Sheffield. It supplied products for battleships and the Model ‘T’ Ford cars.

The Andaray group turned over £40.3m in the year to February 2016, a 3.6% increase year-on-year, despite “difficult trading conditions”. It made a pre-tax profit for the year of £4.9m and in that year employs 360 people.

It has operations in the United Kingdom, China and the United States.

Ronald M. Krisanda, Watermill Advisor and former president and COO at engineering group Milacron Holdings, will serve as the chairman of the board. Owners Tony Brown and his brother, David Brown, will retain a significant shareholding in the company.

“We are thrilled to join Watermill for this next chapter in the history of Cooper & Turner,” said Tony Brown, group CEO, Cooper & Turner.

“For nearly two centuries, this organization has evolved and thrived – innovating alongside cutting-edge customers and developing industry-leading service levels across established and emerging sectors.

“Watermill’s strategic guidance will be invaluable to us as we continue in this tradition of growth and progress.”

“Cooper & Turner’s reputation and track record is virtually unmatched,” said Julia Karol, president and COO of the Watermill Group. “We are impressed with the company’s unwavering commitment to quality and safety, its high customer service levels, as well as its global manufacturing and distribution footprint.

“Combining Watermill’s strategy-driven approach with Cooper & Turner’s highly experienced management team, the company has an exciting opportunity to become the world’s first, truly global mission-critical-fastener supplier.”

Krisanda said: “Cooper & Turner is a compelling business with a highly experienced senior management team, led by brothers Tony and David Brown, whose entrepreneurial vision and operational expertise have been paramount to the organization’s success.

“We look forward to working with them and their team to uncover new opportunities and accelerate the Company’s growth in the booming international wind sector and beyond.”

The acquisition of Cooper & Turner deepens Watermill’s presence in the UK, and adds to a portfolio of other holdings across North America.

Mid Cap Financial Services provided debt for the transaction and Grant Thornton provided corporate finance, debt advisory, tax and financial due diligence advice to Watermill. K&L Gates provided Legal Counsel to Watermill. Mazars advised Cooper & Turner and Mincoffs Solicitors provided legal counsel.

Grant Thornton provided corporate finance, debt advisory, tax and financial due diligence advice to Watermill.

The team included Richard Goldsack, Matt Bryden-Smith, Will Brennand and Jacob Leone (corporate finance), and Dan Rosinke, Jonathan Lister, Declan Ramsey and Lucy Parker (due diligence).

Richard Goldsack, corporate finance partner at Grant Thornton in Leeds, said: “Cooper & Turner is a leading and long-standing Yorkshire company with a global reach and one that with the strategic support of Watermill now has excellent opportunities for further growth. It’s been particularly pleasing to support this international transaction which demonstrates the attractive investment proposition offered by Yorkshire’s manufacturing sector.”

Pictured: Aluminium smelter in Dubai, which Cooper & Turner supplied