Firth Rixson tops deals league

SHEFFIELD-based engineering firm Firth Rixon is set to be bought out by US private equity firm Oak Hill Capital in a $2bn (£945m) deal.

The firm, which employs nearly 1,000 staff in Sheffield and specialises in products for aerospace engine manufacturers, was bought by Carlyle in 2003.

Since then it has been transformed from a loss-making business to a company generating annual revenues of £500m.

Robert Easton, Carlyle managing director said: " Firth Rixson is a fantastic growth story and the company has been transformed over the period of our ownership."

Oak Hill Capital said that Firth Rixson's management team is expected to remain "significant" investors in the firm.

As well as operations in Sheffield, Firth Rixson has operations in the US and Hungary. The deal is expected to be finalised in December subject to regulatory approvals.

Lloyds TSB Corporate Markets, in conjunction with Lehman Brothers and GE Capital, has underwritten the debt facilities.

Simon Banham, area director and head of Corporate Markets in Yorkshire and Humberside said: "Firth Rixson is a fantastic Yorkshire business with a truly global reach and market leading positions driven by innovation and a high class management team. We are delighted to be involved in this huge, landmark deal. It says three important things about our banking capabilities – that we offer a highly responsive and effective credit offering, that we deliver locally, and that we are with our clients for the whole journey."

The corporate team from the Sheffield office of legal services provider DLA Piper, led by partner Richard May, acted as advisors to management in the deal. A PricewaterhouseCoopers transaction services team led by Nigel Ward with assistance from Joanna King, provided vendor due diligence advice on the sale.