Wright Industries acquires Custom Interconnect in innovative deal
STAFFORDSHIRE-based engineering investor Wright Industries has expanded its portfolio with the full acquisition of a specialist electronic manufacturing firm.
The Burton-upon-Trent business has taken over Hampshire-based Custom Interconnect Ltd for an undisclosed sum.
The deal comes after Wright Industries’ made a strategic investment in Custom Interconnect in December last year. The deal saw Craig Wright, Wright Industries’ Chief Executive, become Executive Chairman of Custom Interconnect.
In an innovative approach to business acquisitions, Wright Industries agreed a deal with the retiring Custom Interconnect shareholders, enabling it to affect a strategic plan, together with an operational and financial restructuring, all within an agreed nine months timeline.
During this period, Wright Industries and the incumbent management were led by Craig Wright, in order to take the business through an ambitious growth plan. These changes resulted in an order book increase of more than 70%, 30% growth in revenue and a 20% increase in head count.
Mr Wright said: “The focussed strategic development plan and growth we have achieved with Custom Interconnect over the past nine months brought to effect the potential we saw in the business. While nine months ago Custom Interconnect was not operating to its full potential, the restructuring of the business to enhance its commercial and operational performance quickly enabled the business to release pent up opportunity and we will be working to release more over the coming months.”
Custom Interconnect, which employs 125 people at its Andover site, will trade as part of a new group company called Connexion Technologies Limited.
The group’s development plan, which will include ‘bolt on’ acquisitions, is being supported financially with new banking facilities of £3.2m from Leumi ABL.
Jason Holland, West Midlands Regional Director of Leumi ABL said: “We are pleased to have been selected by Wright Industries to partner them in the development of the strategy of Custom Interconnect and the Connexion Technologies Group. The business has great potential to enhance its market leading positions in the oil and gas, secure RF communications, video capture, optics and medical markets.”
The Birmingham office of Gateley provided legal advice to Wright Industries. Leumi was advised by Freeth Cartwright.
