Restructuring sees £900m of debt wiped from 240-year-old manufacturer

Manufacturer Doncasters Group has wiped out some £900m of debt, installed a new chief executive and non-executive chairman and transferred the ownership of its operating group to its funders.

The Burton-on-Trent firm says the removal of the debt will improve liquidity. The deal was completed by its first and second lien lenders who voted unanimously to support the restructuring in return for ownership of the operating group.

On 1 March, as part of the deal, Jas Sahota, formerly a senior restructuring partner at Deloitte, was appointed as executive chairman and chief executive officer of Doncasters Group.

Over the past 12 months, the 240-year-old business has sold eight non-core divisions and concentrated on high value superalloys and investment casting manufacturing.

With the deal completed, Sahota will step down from his positions. Mike Quinn has been named as chief executive officer and Dirkson Charles as non-executive chairman. Nick Sanders will be appointed as independent non-executive director. Chief restructuring officer Michael Thomas will also step down from his interim board role.

Sahota said: “The Doncasters’ Board and senior leadership team, supported by our colleagues across the Group, have over the past 12 months successfully implemented the first stage of a multifaceted strategy and I would like to thank them for their dedication and achievements. Mike Quinn’s and Dirkson Charles’s appointments will provide invaluable deep industry and operational expertise for the implementation of the next phase of Doncasters’ strategy and operational excellence programme in its chosen core markets. The Group is well positioned to deliver the next phase of its strategy against a backdrop of financial strength and streamlined business model and, importantly, with the continued support of the Group’s lenders, who now also become the new shareholders.”

Mike Quinn stated: “It is a privilege for me to have the opportunity to lead an organisation with the capability and history of the Doncasters group. My initial priority is to share the news with our customers that we are here to stay for the long haul and have the backing of our shareholders to invest in the businesses. Couple this with the skills and dedication of the workforce and I believe this will provide a compelling proposition for our customers as we endeavour to grow our aerospace and IGT businesses. Internally, our focus will be on operational excellence to provide our customers with a strong strategic partnership and high-quality products when they need them.”

Quinn most recently served as the CEO of Ervia, the parent company of Gas Network Ireland, Irish Water and Aurora Telecom. From 2005 to 2014, he worked at Precision Castparts Corporation as the group vice president with the responsibility for five operating businesses across 10 locations.

Dirkson Charles said: “I am excited to lead the board of directors of Doncasters as we move forward with support from our shareholders, the talent and experience of our over 2,200 employees and a clean sheet of paper that will allow us to position Doncasters for success in the future. Over the course of the next 60 days we will put in place a board to supplement the management team lead by Mike Quinn. The first of such appointments is Nick Sanders and who brings a wealth of experience in managing businesses through a transition to success.”

Dirkson is the founder and CEO of Loar Group, a leading designer and supplier of aerospace and defence products with a mission to acquire companies in the aerospace and defence industries with niche, proprietary and/or leading product offerings within their markets. He previously served as the CFO and executive vice president for McKechnie Aerospace between 2007 and 2010.

Nick Sanders most recently served as the chairman of Gardner Aerospace, the international manufacturer of aerospace finished components, between 2010 and 2019. He previously held various roles in the aerospace industry, including as CEO of CompAir from 2002 to 2009 and operational director at TRW Lucas Aerospace between 1992 and 2001. He started his career at the aerospace division of Rolls-Royce.

Following the deal, Doncasters now has around £240m of debt.