£6m turnover engineering firm completes MBO
A Colne-based precision engineering equipment has been bought by its management team for an undisclosed sum.
NR (Automatics) Engineering Ltd has been bought by a management team consisting of Martin Hardisty, managing director, and Mark Stinchon, operations director.
The cross-border buyout also includes the acquisition of NRA Holdings Ltd and NR Group Ltd, which includes NR Hytech, a 50% subsidiary based in India.
NR Engineering was established in 1977, and now boasts a 25,000 sq ft UK facility on Skipton Road in Colne. It has a turnover of £6m and 86 staff.
The company specialises in turned components for use in equipment including hydraulics, gearboxes and valves. It supplies earthmoving equipment manufacturers, the medical industry, aerospace and oilfield equipment manufacturers.
Martin Hardisty of the newly formed NRA Engineering Group, said: “The business plan that has been created for the MBO has identified a number of potential opportunities for us to explore in the near future. We will also be keen to make the most of developments in our Indian plant.”
Blackburn-based corporate finance specialist Pierce, led by corporate finance director David Sharpe, advised the company’s management team.
Mr Hardisty added: “Their understanding of our sector and the Indian operation was crucial and they identified the best structured deal to suit all parties, helping us complete efficiently and effectively.”
David Sharpe of Pierce said: “It’s fantastic to see transactions like this taking place in the North West. We are delighted to have advised on this transaction and worked hard to ensure the right deal was structured for them and all other parties. The MBO will enable the business to achieve its full potential.”
The deal was backed by RBS Invoice Finance and Lombards. Legal advice was provided to the MBO team by Sonio Singh, partner at Davis Blank Furniss, and Debbie King at Farleys for the vendors.
Sonio Singh added: “It is terrific to see the North West continue to thrive in this sector, despite a challenging market. This was an acquisition that was not without its complexities and needed to be completed in a fairly urgent timeframe.”
