NorthEdge backs MBO of engineering specialist
NorthEdge Capital has backed the MBO of engineering tooling supplier Cutwel as it aims to double its headcount over the next four years and drive sales across the SME market.
Operating from its purpose-built, 24,000sq ft distribution facility in Cleckheaton, Cutwel specialises in supplying precision cutting tools and machine accessories to the engineering industry throughout the UK and Ireland.
Since founding the company in 1996, husband and wife Paul and Mary Hawksworth have invested in strengthening Cutwel’s sales and technical teams, increasing headcount to over 50 people and delivering year-on-year revenue growth from £6m in FY12 to over £16m in the year to April 2018.
NorthEdge’s investment in Cutwel, backing the existing management team led by Adam Gillard, Graham Short and Shaunie Mangham, will support the company as it continues to scale its sales team with investment in recruitment and training.
The deal was led by NorthEdge partner Andy Ball with support from Tom Rowley, director and Nicola McQuaid, investment manager.
Rowley will join the board in a non-executive capacity. Colin Stirling, former partner at Spirit Capital, has been appointed as non-executive chairman.
Adam Gillard, general manager at Cutwel, said: “NorthEdge’s investment represents a key milestone for Cutwel. The team truly understands our values and has demonstrated a strong track record of supporting high-growth businesses.
“We are proud of what Cutwel has achieved over the past 20 years, combining great products with excellent customer service. This investment is the next step on that journey. We look forward to working with NorthEdge to further strengthen our team, grow our suppliers’ brands and continue the strong momentum our talented team has generated to date.”
Rowley said: “The management team at Cutwel, led by Adam Gillard, Graham Short, and Shaunie Mangham and under the guidance of Paul and Mary Hawksworth, has built a business with its people at its core, and in doing so has delivered strong year-on-year growth and a leading reputation in the sector for providing expert information and advice to its clients.”
NorthEdge was advised by GCA Altium (Stuart Warriner and Andy Battersby), Womble Bond Dickinson (Simon Pilling, James Cook and Catherine Willis), PwC (Joel Smith and Nicola Widdson) and CIL (Jon Whiteman and James Fothergill). Management was advised by Sentio (Dave Irwin) and 3volution.
Corporate finance advice was provided to the vendors by PwC (Paul Mankin and Iffy Hussein). DLA Piper (Stephen Atkinson and Mark Cliffe) provided legal advice. Wheawill and Sudworth (David Butterworth and Darren Eastham) provided accounting advice.
