 Pictured following the announcement of the deal are (left to right), Doug Smith, President and COO of Roush Enterprises, John Mitchell, Managing Director of Roush Technologies, Andrew Williams who becomes Chairman of the new business and Gary Robertson, Roush Technologies’ Finance Director.
The Essex-based subsidiary of Roush Enterprises, the engineering power behind wins in races ranging from rally to Le Mans categories, has set itself up for major growth and investment following an acquisition backed by established turnaround specialist, Andrew Williams.
The British team has stumped up the cash required to drive the engineering firm, which boasts contracts in defence as well as motorsports, into its next stage of development.
The newly formed team now plan to take the company forward, using its new-found freedom to explore the changing automotive sector.
“It frees them to be much more nimble in terms of pointing the business at opportunities as they arise,” said a company spokesman.
“The sale reflects the changing of automotive and engineering sector. Where key customers of ours used to say they need to have a presence in every part of the world, that has changed.”
The investment group is comprised of the current Roush Europe senior management team – MD, John Mitchell and FD, Gary Robertson – who continue in post and acquire an equity stake, along with turnaround specialist, Andrew Williams who will take on the duties of chairman.
“Andrew Williams is an established turnaround specialist with a track record of turning companies around, some from loss makers to big growth firms,” said the spokesman.
The consortium, which bankrolled the purchase without venture capital or external funding, will retain the name Roush Technologies Ltd for up to 12 months and will take over Roush’s existing facility near Brentwood, which employs more than 60.
“During the next year, the business will be progressively re-branded and repositioned to face and meet the changing demands of the automotive and engineering services sectors,” said the new chairman, Andrew Williams.
“The initial retention of the Roush name – and the conclusion of a number of collaborative and licence agreements, will ensure both continuity and stability of the business in the way it currently serves its clients and customers,” he continued.
Also included in the purchase is Mountune, Roush Technologies’ wholly owned specialist race engine & motorsport business.
The new company has played its hand close to its chest, releasing little about the intended nomenclature or branding for the business which will supersede the Roush Technologies name during 2008. In addition, the company will continue to benefit from the provision of specialist support to owners of Ford’s supercar, the Ford GT in the UK and Europe, and distribute Roush Performance aftermarket products and parts.
Under the terms of the deal, the Michigan, US-based parent company has entered into a cooperation agreement to supply engineering services on a reciprocal basis between Europe and Roush Industries’ existing business in the US.
The company made the investment in response to an altered automotive and engineering sector, where key customers have changed their ideas that they require a presence in every part of the world, the company spokesman said.
It is investment that was not forthcoming from the American parent company.
President and COO of Roush Enterprises in the US, Doug Smith said: “Our business in the UK has been very strong over the last 12 years, but we felt that growing the business further would require not only a larger investment of capital but, more importantly, a significant commitment of time from our management team in the US.
“Our conclusion was to invest our time and money in continuing to grow our successful North American based operations.”
FD John Mitchell, who will remain responsible for the day-to-day running of the firm replied: “We are very fortunate to have been able to achieve a formula which allows the business to move on and realign itself to develop in a changing engineering environment.”
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