Private equity firm swoops for tool cutting firm

A Leeds-headquartered tool cutting company has been snapped up by a private equity firm.

Cairngorm Capital Partners has acquired Helix Tool Company, an independent cutting tools specialist in the North which employs 17 people. The transaction advances Cairngorm Capital’s strategy to create a new national full-service Maintenance, Repair and Overhaul (MRO) distribution business providing precision engineering components, specialist ancillary services and in-depth technical expertise to industrial clients.

Founded by Charles and Louise Robinson in 1994, Helix is a leading independent cutting tools specialist offering both consultancy and supply to clients across the aerospace, automotive, medical, oil & gas and power generation sectors.

The firm has built its reputation and long-standing relationships by providing clients with technical guidance and working with them to refine and optimise their processes, thereby delivering increased productivity and reducing costs.

The acquisition of Helix is Cairngorm Capital’s 15th proprietary transaction since July 2016 and its second investment in the MRO industry following the acquisition earlier this year of MJ Wilson. As a leading specialist in the cutting tools segment, Helix’s offering is highly complementary and extends the capabilities of Cairngorm Capital’s MRO platform.

Helix will continue to operate as a separate business but opportunities to enhance the customer proposition and capitalise on synergies arising from the two businesses will be fully explored. The firm will benefit from capital and expert strategic guidance to support its geographic expansion and new customer acquisition. Charles and Louise Robinson will continue to lead the business going forward.

Charles Robinson, Helix’s Managing Director, said: “Louise and I are proud of all that we have achieved to date, in particular having developed our supply and technical support service into a collaborative methodology that delivers increased productivity and reduced costs for all our customers – it has made us the first choice technology supply partner. Nevertheless, we knew that with the right partner there was much more that we could offer. We have ambitious plans so are looking forward to working with Ian Ritchie, Mike Kerins and Cairngorm Capital to benefit from the considerable expertise that they have to offer. It heralds a new phase in Helix’s development.”

Amit Thaper, Investment Director at Cairngorm Capital, added: “As we build our national MRO distribution business, we are particularly interested in firms that are technically focused, add value to their customers and possess strong growth prospects.  Helix is the perfect addition to our MRO group – its product range, technical know-how and customer service are all exceptional. We are delighted to partner with MRO+ Solutions, Charles and Louise to support the next phase of Helix’s growth.”

Cairngorm Capital were advised on the transaction by PwC (financial and tax), Gowling WLG (legal), and JLT (insurance). Helix shareholders were advised by Dow Schofield Watts (corporate finance), and Walker Morris (legal). Barclays Bank Group provided bank facilities to support the transaction.

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