Cube Precision expands in Black Country acquisition
A BLACK Country engineering firm is fulfilling its pledge to grow its business with the acquisition of a near neighbour in a deal advised out of the area.
Rowley Regis-based Cube Precision Engineering has purchased fellow precision engineering and tool manufacturer GFP Tools in Dudley. The terms of the deal have not been disclosed.
Cube, founded by Neil Clifton and Phillip Bannister in January 2009, specialises in the design and development of production tooling for clients across the UK.
The two men, joint managing directors of the business, have been focused on their growth plans for some time and the acquisition of GFP is seen as the first in a series of similar deals which will see them realise their plans for sustained growth of the business over the next three years.
Clifton said: “Since we started Cube in 2009, demand for British-made products from around the world has increased.
“We have invested in machinery and staff to meet that demand. It was always our plan to grow through acquisition and we have held GFP Tools in high regard as one of our sub-contractors for several years. They share the same approach to business.”
Black Country law firm Higgs & Sons and audit, tax and advisory firm Crowe Clark Whitehill advised on the deal.
In addition to the acquisition, specialist advisers from Higgs’ corporate team also assisted with the corporate reorganisation of the Cube Group to provide the platform for future acquisitions.
Richard Griffiths, corporate partner who led the Higgs & Sons’ team, said: “We were delighted to be instructed by Cube to assist with the acquisition of GFP and we are looking forward to working alongside them as they implement their ambitious plans for the Cube Group.
“Cube is a real local manufacturing success story and I am confident that the business will continue to go from strength to strength.”
Andy Kay, corporate finance partner at Crowe Clark Whitehill, who also advised on the deal, said: “Cube is an engineering business that is growing and looking to enhance capacity.
“The acquisition of one of their suppliers who they know and respect was the first step in this process.
“This is a very good strategic move which brings further capacity in-house and hopefully will lead to more acquisitions before long.”
The deal was funded by a Lloyds Bank team led by Mark Meakin, relationship director for Midlands manufacturing clients.
