Investment group acquires £17.6m engineering services company

RD Capital Partners (RDCP) has acquired engineering services firm Grayton Ltd for an undisclosed sum.

Headquartered in Barton-upon-Humber, Grayton provides mechanical engineering solutions to a range of UK industries including steel, cement, oil and gas, chemicals, food, and power.

Established in 1992, the business also operates from a site at Marsh Lane in Barton.

The firm services UK and European markets from these two workshops totalling over 7,000 sq ft.

It is an expert on industrial rotary plant including survey, diagnostics, maintenance and installation, working with blue chip clients across the UK including Tarmac, Ensus British Steel, British Sugar, Tata Steel, P66, Breedon and Vivergo Fuels.

Grayton is a £17.6m turnover business, employing 130 staff and delivering adjusted EBITDA of £3.2m in 2023.

RDCP is a London-based diversified investment group, which has acquired an 80% stake in Grayton, backing Carl Meale and Richard Southee as incoming joint managing directors and 20% shareholders in the business.

The completion of this latest acquisition increases RDCP’s enterprise value to $600m/£474m, employing 2,000 staff members across multiple sectors in the UK and forms part of the firm’s strategy to strengthen its presence in the UK industrials sector through acquisitions.

Finance for the deal was provided by Beach Point Capital (BPC) represented by Shane Lanigan, Seth Vaughan, and Jakob Nilsson.

This is BPC’s second time supporting RD Capital Partners after backing the acquisition of Alma Rail in 2022.

RDCP is led by founder and CEO Sameer Rizvi and supported by senior management team of Iryna Dubylovska, Martin O’Donoghue and Paul Clunn.

Rizvi said: “Richard Marshall and Peter O’Sullivan have built an outstanding engineering firm while supporting the next generation of leadership in Carl Meale and Richard Southee.

“We are particularly excited to back Carl and Richard as they jointly lead the business into its next phase of growth.

“This acquisition also brings significant synergies with other RDCP portfolio companies, such as RDCP Electrical and MCS Group.

“Finally, I would like to thank Beach Point Capital – especially Shane Lanigan, Seth Vaughan, and Jakob Nilsson – for supporting RDCP’s investment strategy once again, following their backing of our Alma Rail acquisition in 2022.”

Carl Meale, incoming joint managing director at Grayton, added: “This is a pivotal moment for Grayton, and I would like to express my gratitude to Peter O’Sullivan and Richard Marshall for their dedication to the business and their ongoing support as they continue with us for the next few years before their retirement.

“I have been with Grayton’s for over 18 years and in that time we have always looked to the future and made strong plans for all our clients and staff members alike.

“Alongside my fellow joint managing director, Richard Southee, I am excited to work closely with the RDCP team, who share our values, vision and growth ambitions.

“For over 30 years, Grayton has delivered a wide range of mechanical engineering expertise to strategic industries across the UK, and we remain firmly committed to expanding our presence both in the UK and Europe.

“For our staff, customers and suppliers, it is business as usual as we look ahead to meeting the growing demand for our services, which include design, survey, maintenance, remedial, and project work – all delivered to the highest standards.”

The RDCP deal team comprised Sameer Rizvi, Iryna Dubylovska, Martin O’Donoghue and Paul Clunn. The lending partner team included Shane Lanigan, Seth Vaughan and Jakob Nilsson of Beach Point Capital.

The sellers’ deal team comprised lawyers Edward Capes and Luke Rees of Wilkin Chapman.