‘Turnaround king’ acquires manufacturing business

YORKSHIRE entrepreneur Kevin Parkin has, with his management team, acquired a manufacturing business.

The company, based in Staffordshire, was bought in the deal which was part funded by Finance Birmingham.

The organisation injected £1.2m into the multi-million pound package that has seen Tamworth-based Precision Technologies International sold to a management team led by Mr Parkin.

Supported with funding from Finance Birmingham, Panoramic Growth Equity, Management and Santander Invoice Finance, the deal sees current management Colin Palin and Patrick Walker invest with Parkin, who becomes chief executive of PTI, to acquire the PTI business as part of a buy-in management buyout (BIMBO) transaction.

PTI has more than 50 years’ experience in the manufacture of specialist precision parts across a range of sectors including Formula One, medical, oil & gas and aerospace. The funding will see the firm increase its current offering in order to explore new markets such as nuclear and defence.

The deal will lead to the creation of a minimum of 15 new highly skilled jobs including a number of apprenticeships.

Mr Parkin, the former managing director of DavyMarkham, said: “We are keen to retain high quality engineering expertise in the UK and PTI is certainly at the cutting edge of providing specialist low volume components that are used in extremely demanding conditions.

“To maintain this service from manufacturing to the testing and inspection of products, there is a demand for an engineering expertise that can only be achieved by a dedication to apprentice training and a philosophy of continuous improvement.

“The superb foundations that already exist and the skills upon which this business has been developed will continue through these training schemes and we will continue to invest in fine tuning these capabilities.

“I’m keen to work with our local universities and academies and source the very best talent from what I know are exceptional manufacturing and engineering departments and enhance manufacturing techniques in the business.”

Mr Parkin has been dubbed the ‘turnaround king’ after being credited with reviving two 150 year-old manufacturing businesses in Sheffield and Chesterfield, bringing them together under the DavyMarkham brand.

They were then acquired by private equity house Endless. He specialises in short term appointments, and in 2013 was appointed as managing director at industrial automation business Knight Warner.

Ian Fairclough, investment director at Finance Birmingham, said: “PTI has an excellent reputation for producing high value components for a wide range of clients.

“The company’s potential to strengthen its offering is evident through its plans to drive revenue, not only with its existing customers, but by entering new markets. The support from Finance Birmingham will accelerate this by allowing the business to invest in the additional staff and operations needed to do so.”

The investment has been provided by Finance Birmingham as part of the £56m Mezzanine Fund – open to any SME across the West Midlands and supported by the Regional Growth Fund.

Legal advice for the deal was provided by Nabarro, Freeths, Gateley, Vialex and Irwin Mitchell. Corporate finance was provided by Castle Square Corporate Finance and Seneca, financial due diligence by PwC, commercial due diligence by Carlton Strategic Advisors and insurance due diligence by T L Dallas.