Engineering company’s managers complete secondary buy-out

MANAGERS at the precision engineering company Lattimer have completed a secondary buy-out of the £10m turnover business.
 
They have bought out the Merseyside Special Investment Fund (MSIF) which originally backed the team’s £4m acquisition of the business from engineering group Hampson Industries in 2007.
 
The value of the latest deal was not disclosed but MSIF said it had more than doubled its original investment of £2.3m. The management team were said to have used their own funds for the transaction.
 
Lattimer employs 150 staff and specialises in components for the bottled glass manufacturing industry. It has around 80 employees in Southport and 70 spread across a site in the West Midlands and one in the US.
 
Since the 2007 buyout, revenues grew from around £8m to £12m but slipped back to £10.4m in the year to March 2013. Pre-tax profits fell from £693,000 to £189,000.
 
Chief executive Stephen Waterhouse said: “Since the original MBO in 2007 we have been able to make key strategic decisions to drive significant overseas growth. Our highly experienced senior management team has also been able to steer the business into new territories and markets.
 
“We now have ambitious plans to continue driving growth. This is underpinned by the recent launch of our machinery maintenance division, Lattimer Glass Services, and further multi-million pound investment in new manufacturing machinery and an apprentice training academy.”
 
MSIF investment director Marion Savill said: “The original MBO allowed the local management of Lattimer to buy a majority stake in a business which had previously been part of a large group.

“Since then, the company has enjoyed considerable success, and has continued to invest in its manufacturing operations both in Merseyside and in the US. This has also been a highly successful investment for MSIF, and we are delighted that management have now been able to acquire 100% control of the business.”
 
Craig Scott at Hill Dickinson provided legal advice to the management team.