Total Capital Partners invests £17m in precision engineering MBO
Total Capital Partners has funded the management buyout of Cambridgeshire precision engineering business Precise Component Manufacture Limited (PCML).
It has provided a complete equity and debt funding package to back the business and facilitate the exit of the retiring shareholders.
Total Capital is providing £17 million of equity and debt and will take an 85 per cent equity stake in the business.
Headquartered in Teversham and with five manufacturing sites in East Anglia, PCML provides rapid-turnaround manufacturing of complex custom components and assemblies to clients in R & D intensive industries, with an increasing focus on the Biotech and Medical technology sectors.
The business has doubled in size in the last four years with turnover increasing from £6.5m in 2016 to £13m in 2020.
Total Capital Partners plans to further accelerate the growth of the business by making targeted acquisitions and strengthening its core activities, accreditations and market share in the bio science, medical, scientific equipment and high tech industrial sectors. PCML’s strategic aim is to become the UK’s leading biomedical science manufacturing hub.
PCML has demonstrated resilient trading during the last year and has continued full operations throughout the coronavirus crisis. Importantly, it played a leading role in the ventilator project during the first wave of the pandemic in the UK in the spring of 2020. PCML also manufactures and assembles for leading biomedical customers developing coronavirus and other diagnostic testing equipment.
The UK market for high precision engineering is estimated to be circa. £5.9 billion a year. The rising global demand for machined components is being driven by continued technological advancement and a shift towards smart manufacturing.
Customers are increasingly looking for dynamic and flexible supply chains with rapid turnaround and customised specifications. PCML is a highly evolved business, leveraging its technology, IT operating platform and automated processes to provide the manufacturing agility that clients require along with rapid turnaround, design and technical input and market leading engineering capabilities.
Nadine Bishop, managing director of PCML said: “Total Capital Partners has provided a flexible equity and debt solution that really suits PCML’s needs. They understand our business and see the tremendous opportunities ahead for PCML. What is important is that their funding solution can adapt and flex to enable our business to achieve its growth plans. We are delighted to have them on board.”
KPMG in Cambridge was one of the key advisers in the transaction.
Chris Wilson, head of Corporate Finance at KPMG in Cambridge said: “This is really positive news for an important local business and employer. PCML is a fine example of the forward-thinking, entrepreneurial businesses which characterise this region. This is a great deal for all concerned and we wish PCML and Total Capital well on the next exciting phase of growth.
“Following the global events of the last year, we are seeing lots of M & A activity across all parts of the life sciences sector at the moment – attracting lots of private equity and venture capital interest. This is positive news for the East of England region which has a growing global reputation for producing some of the most innovative and exciting businesses in this space.”