ONE of the UK's leading suppliers of aircraft components and conveyor systems has undergone a management buyout for an undisclosed sum.
Farnworth-based Bolton Engineering Company Limited and its subsidiary Silcoms, have been successfully bought by the management team of Keith Harrison, Keith Hindle, John Cottam and John England.
The MBO team acquired the £12.5 million turnover business from the existing shareholders, which included private equity firm 3i, to develop the business and safeguard jobs.
Keith Harrison said: "This second generation management buy-out restores ownership and control to the directors of the company and provides the structure required to take the business forward."
Silcoms produces machined rings, casings, seals and segments, as components or assemblies, for the aero-engine and gas turbine industries, and chain and conveyor systems for the food industry.
The company, which can be traced back to 1939, today employs more than 120 staff at its site on Piggott Street, and its clients include Rolls-Royce, Kelloggs and Warburtons.
Preston law firm Napthens Solicitors and Blackburn-based accountants Pierce advised the MBO team on the deal, which was funded by GE Commercial Finance, which also funded a management buyout of Horwich towel manufacturer Chortex last year.
Andrew Clare, partner in the corporate and commercial team at Napthens, assisted by commercial property partner, Wendy Newbury, advised the MBO team. He said: "This was a complex MBO involving five firms of solicitors and some particularly challenging issues.
"It was a pleasure to work with Keith Harrison and the other members of the MBO team and I am delighted that the deal has completed successfully. I am confident the company will go from strength to strength."
John Green and Nadeem Hussain from Blackburn-based accountancy and business advisory group, Pierce, advised the MBO team on the financial structuring and tax issues involved in the acquisition.
John Green, managing director of Pierce, said: "We thoroughly enjoyed working with the management team, vendors and funders to find the right solution for them all.
Simon Wells, of GE Commercial Finance's finance director for the North, said: "The recent MBO is testament to the management's success in building up a strongly profitable business."
DLA Piper advised GE Commercial Finance, Addleshaw Goddard acted for exiting shareholder 3i Group and DWF advised the other shareholders of Bolton Engineering.
Hammonds and Robson Rhodes advised on the pension fund for the trustees and Ernst and Young advised on the clearance application to The Pensions Regulator.
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