Private equity firm backs MBO at engineering exporter
A forensic science equipment supplier which exports to more than 160 countries has undergone a management buyout.
Managing director Bob Dartnell has led the deal to take over Foster + Freeman, which was founded in 1978 by Doug Foster and Bob Freeman.
The Evesham-based business has built a global reputation based on its R&D work. Its new product, Recover, is the only technology available worldwide for developing fingermarks on fired ammunition casings and bomb fragments.
Foster + Freeman generates more than 90% of its revenues from outside the UK, with sales outside Europe responsible for around three-quarters of its £20m annual sales.
Private equity firm Primary Capital Partners has backed the management buy-out, with the balance of funding coming from debt facilities provided by HSBC.
Dartnell said the support would help the company “in delivering the next phase of growth”.
He added: “It is an exciting time as we continue to deliver year on year growth supported by an exciting range of new product innovations.”
Alistair Armstrong, who led Primary’s deal team, said: “Foster + Freeman is an excellent example of how a British engineering company can successfully compete on a worldwide stage.
“We look forward to partnering with Bob Dartnell and the exceptionally talented people at Foster + Freeman to invest further in R&D and new product development and accelerate the company’s technology leadership.”
PwC Corporate Finance acted as lead adviser to management on the transaction.
Copeland, director at PwC in the Midlands, said: “Foster + Freeman is a global leader in its chosen niche market with a real focus on innovation.
“The company has an exciting range of products in development, which will continue to deliver new technologies to its global market.”
PwC also provided financial and tax due diligence in connection with the deal. Pinsent Masons acted as the legal adviser to Primary and DLA Piper advised the management team. The sellers were advised by Harrison Clark Rickerbys.
