Shareholder exits as engineering firm lands investment deal

A Telford manufacturer has secured an undisclosed funding deal that will see one of its three shareholders exit the business.

Chelverton Investment Club has taken a share in Eagle Engineering, in a deal brokered by accountancy firm Azets.

Eagle Engineering designs and manufactures specialist electroplating barrels and machines used for plating small components such as coins and fasteners, as well as a variety of related spare parts and consumables. The business is owned by three brothers.

Chelverton’s investment director, Richard Bucknell, saud: “The Nixon brothers have built a high-quality engineering business which is at the forefront of its field on a global basis. We’re looking forward to working with Simon and Martin to capitalise on this niche market leadership and exploit the clear potential that is evident in Europe, the Americas and the Far East.

“We have introduced a highly experienced investing chairman in Nick Harrison, who has had a long and successful career in sales, marketing and leadership roles within multi-national engineering businesses, to assist the brothers moving forward.

“The Chelverton Investor Club is an active investor in niche, highly differentiated business, such as Eagle, and looks to be a committed partner for the management team, with a view to enhancing shareholder value over the medium to long term.”

Simon Nixon, Eagle Engineering shareholder, said: “We quickly recognised that Nick and Richard were the right partnership to support us in the future and we welcome them on board for the next part of our journey. I would like to thank the team at Azets and Browne Jacobson who have held our hands throughout the process. The demands and complexity of the process exceeded our expectations, and we could not have got there without them and their pragmatic and commercial advice.”

Martin Poole, corporate finance partner with Azets, added: “In Chelverton, we found an investor that recognises the quality of the business and who offered a funding structure that satisfies the differing long-term aspirations of the shareholders and the company. With the support of Chelverton and Nick, the business is well placed to capitalise on the growth opportunities ahead.”

The Eagle shareholders were advised by Azets Corporate Finance (Martin Poole), with legal advice provided by Browne Jacobson (Kirk Glenn, Gareth Davies).

Chelverton were advised by Dan James and Tom Bradbury of Wilson Partners (financial due diligence) and Rachael Reeves of Harrison Clark Rickerbys Solicitors (legal).