Norman Hay completes second major acquisition after targeting Germany
COVENTRY engineering group Norman Hay has completed a second major acquisition in as many months – this time targeting the Eurozone.
Following the successful acquisition of Sifco-ASC Group in December, the company has now acquired Sterr & Eder, a highly specialised technical engineering business based in Velden, Germany.
Funding for the undisclosed deal – as was the case with the Sifco purchase – was supplied by the Birmingham office of Lloyds Bank Commercial Banking.
The lending facility was arranged using funding from the Government-backed Funding for Lending Scheme (FLS), which enables businesses to take advantage of reduced borrowing costs in order to boost their growth plans and support future investment.
Founded in 1987, Sterr & Eder provides a range of skilled ‘processing’ services to the automotive and foundry industry including impregnation, fettling, shot blasting, leak testing, x-ray analysis, crack detection, industrial washing, heat treatment and hardness testing.
Nick Ogden, Group Financial Director of Norman Hay plc, said: “The completion of two high-quality acquisitions in such quick succession is a milestone for our business, and forms part of our strategic plan to expand the Norman Hay Group internationally into areas that have a clear synergy with our existing operations.”
The multi-million pound funding package from Lloyds will enable Norman Hay to expand its global footprint, as well as diversifying its product range and current service proposition to existing customers.
Established in 1946, Norman Hay plc is a specialist in the design, manufacture, application and distribution of specialist chemicals, sealants and industrial coatings that perform in harsh and challenging environments. Its international customer base includes BMW, Rolls Royce and GE Oil and Gas.
The business reported annual turnover of £35m for the financial year ended December 2012 and expects this figure to increase considerably as a result of its two recent acquisitions.
The business now employs more than 440 people at its UK locations and across a global network that extends to operations in Malaysia, Australia, China and the USA. The latest acquisitions increase the global workforce by 110 people.
Steve Shuker, Relationship Manager at Lloyds Bank Commercial Banking in Birmingham said: “The respective acquisitions of Sifco-ASC Group and Sterr & Eder represent important strategic developments for Norman Hay. Both deals bring businesses to the group that will complement and enhance Norman Hay’s existing service proposition and will ultimately have a positive effect on the business as it looks to build further on their existing success.”
