Rcapital backs MBO at engineering firm

Investment firm Rcapital has backed the MBO of an established heat exchange engineering group, securing 100 jobs.

Thornhill Heat Exchanges, based in Barnsley, was established in 1988 and designs, services and manufactures heat exchange products. It serves a blue-chip customer base in the oil and gas, steel, rail, nuclear, food & drink and power generation sectors.

The deal secures over 100 jobs in the engineering sector and will provide both financial stability for the business and a platform for future growth.

Rcapital has worked closely with the management team to agree and support a growth strategy, focusing not only on Thornhill’s established business divisions in Grimethorpe, where the business already has a leading position in the heat exchanger market, but also its service division in Blaydon and rail division in Warwick.

David Lilley, group managing director at Thornhill Group, said: “I am delighted to be working with Rcapital and look forward to an exciting growth period for our engineering, rail and rubber divisions, driving better performance for customers, suppliers and our employees”

Josie Richardson, director at Rcapital, said:“By offering our continued turnaround expertise and significant sector experience, we fully support the management and operational teams and will work with them to ensure the best possible customer service and sustainable growth. Furthermore, by facilitating a partnership with our existing portfolio company Green’s, the transaction will allow the businesses to work together and collectively benefit from each other’s knowledge and experience in the sector.”

Rcapital was introduced to the opportunity by PwC, with due diligence provided by KPMG and legal advice provided by Walker Morris. Senior debt facilities were provided by Bibby Financial Services, who were advised by Bermans.

The Walker Morris team included Simon Clark, Gawain Moore, Claire Askew, Mark Appleby (Finance) Jo Stephenson (Corporate) Austin Judson (Real Estate) and Andrew Rayment (Employment).

 

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