Precision Micro is Deal of the Month

THE Deal of the Month for July is the latest example of global firms buying up niche businesses.

Birmingham manufacturer Precision Micro was acquired by Meggitt plc for an undisclosed sum.

There was no need for introductions as Meggitt is an existing customer of the Erdington specialist component manufacturer which employs more than 150 people.

Meggitt is a FTSE 100 global engineering group headquartered in Christchurch, Dorset. It specialises in extreme environment components and smart sub-systems for civil aerospace, military and energy markets. The business employs more than 10,000 staff globally.

Precision Micro manufactures specialist metal components for technology-focused organisations in a range of sectors, including aerospace, automotive and energy. The firm has annual sales of around £13m and a blue-chip customer base.

Birmingham-based Clearwater Corporate Finance advised Precision Micro on the deal while a team from the Birmingham offices of Eversheds provided legal advice.

Jon Hustler, partner and head of Clearwater’s industrials team, said: “Precision Micro is growing sales in a highly-specialised area.

“In recent years it has enjoyed sustained organic growth in both the UK and in overseas markets, particularly in Europe.”

TheBusinessDesk.com editor Andy Coyne said: “There are a number of reasons why we chose this transaction as our Deal of the Month.

“Precision Micro is the type of niche manufacturing business the West Midlands is renowned for and its ability to access new markets and to extend its blue chip client base will surely be enhanced with the backing of a large plc.

“The deal also increases Meggitt’s presence in the region. It already has a business in Coventry – Meggitt Aircraft Braking Systems – and is clearly still hunting in the manufacturing heartlands for further strategic acquisitions.

And thirdly, it was a deal advised out of the Midlands. When it comes to manufacturing sector transactions there is nowhere in the country with greater professional expertise and Clearwater and Eversheds have demonstrated that once again here.”