Rical enlarges group with new acquisition
THE owner of the Smethwick-headquartered Rical Group of engineering companies, Byron Head, has enlarged his empire with the acquisition of Kenwell Precision Diecastings for an undisclosed sum.
Mr Head teamed up with the Birmingham office of Freeth Cartwright to secure the deal for the Rochdale-based business.
Rical, whose process capabilities include fine blanked, deep draw and conventional presswork components, die-castings, sheet metal punching and fabrication as well as pressed jewellery findings, has completed the acquisition as a strategic addition to the group.
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Mr Head, previously High Sheriff of the West Midlands and recently appointed Deputy Lieutenant of the West Midlands, said: “The die-casting industry is ripe for consolidation and Rical is ready to be a part of that process.”
Paul Marsh, Rical’s group financial director, said: “In the current tough manufacturing environment, the deal further consolidates Rical as a strong and capable business partner supplying a broad product portfolio to customers in the automotive, construction and general industrial sectors.
“The acquisition will reinforce the Birmingham-based Avon PDC division, which specialises in high quality zinc and aluminium die-castings.”
The Kenwell business will relocate from Rochdale to the Avon site and will boost Rical’s annual turnover to £25m.
The enlarged group, which employs more than 300 people – the bulk in the Midlands, includes the William Mitchell, Fellows, Multiforms, Avon PDC, Taurus, Mitchell Grieve and Priory manufacturing divisions.
Lee Clifford, corporate finance partner at Freeth Cartwright’s Birmingham office, said: “Rical has acquired a well established business, renowned for the manufacture of high quality engineering products. Kenwell should not only be a sound strategic fit for Rical, it should also be a profitable one.”
