Future of Leicestershire engineering firm secured following acquisition
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A Leicestershire engineering company’s future has been safeguarded thanks to an acquisition.
Automatic Engineers, based in Hinckley, has been acquired by TGM Partners, a firm that specialises in the acquisition, transition and growth of owner-managed businesses.
TGM bought the business from Steve Evans, who started with the firm as an apprentice. The company has been manufacturing components for the aerospace, automotive, rail, energy and renewables sectors for more than 50 years.
TGM co-founder Eric Kolodner added: “We are extremely pleased to add Automatic Engineers into the TGM group, which, along with another recent acquisition, will bring our total annual revenue to almost £25m.
“The business will continue to operate from its existing premises and all staff will keep their jobs, to ensure a smooth and seamless transition for employees, customers and suppliers.”
As well as Automatic Engineers, TGM has also recently acquired Barnsley’s Vesseltec UK, an engineering firm specialising in designing and manufacturing pressure vessels for the pharmaceutical sector and other industries.
Fellow TGM co-founder Jon Frewin added: “These two acquisitions will underscore our four-year track record of providing attractive exit solutions to long-term owners of SMEs in the engineering and industrial manufacturing sectors.
“These acquisitions allow us to expand our scope of manufacturing/engineering capabilities and services across a broader set of sectors and customers, including serving an increasing number of blue-chip corporates.
“Our flexible approach to acquisitions is reflected in both deals; the seller of Automatic Engineers is looking to transition out of the business quickly, while at Vesseltec, the seller is planning to continue providing services to the company for the foreseeable future.
“In the coming months, we will provide training to develop the skills and careers of relevant staff members, which reflects our focus on continuity, stability and growth of our acquired businesses.”
The deals were supported by Mark Roberts, of Achieve Corporation, who was the corporate finance adviser to the sellers for the Vesseltec sale, and James Clinghan and Mike Asquith of Trusted Business Partner, who provided corporate finance assistance to TGM on both transactions.