MBO completes at precision engineering company
A Washington-based precision engineering company has undergone a management buyout, supported by a seven-figure funding package from NatWest. The deal was worked on by prominent advisers.
PDQ Engineering operates from an 11,500 sq ft facility in Washington and produces component parts for sectors such as offshore energy and medical industry.
The firm was acquired in 2004 by Paul Jackson, who had been director since the 1980s, and his wife Gayle Jackson.
All of Paul and Gayle’s shares have now been purchased by a seven-strong management team led by commercial director Richard Mellett, and including Wayne Phipps, David Pearce, Jason Parkes, Gerard Jackson, Chris Leach and Alan Shield.
To support the continued growth of the business, the team will work closely with NatWest, maintaining a long-established relationship as the businesses incumbent banking partner.
Richard Mellett, commercial director of PDQ Engineering, said: “Our MBO will ensure continuity and will enable us to build upon the excellent growth we have achieved over recent years. Paul and Gayle have been the driving force of the business, recognising the importance of succession, which has enabled the management team to become increasingly involved in the strategic as well as the operational elements of the business in anticipation of this MBO transaction.”
Paul Jackson added: “Gayle and I are exceptionally proud of this business and have complete confidence in the management team who will maintain the high standards we have set, which has enabled the business to carve out a strong position in the supply chains within the industries we serve.”
Newcastle-based RG Corporate Finance advised the management team on the MBO, led by head of corporate finance Carl Swansbury and supported by CF manager Tom Cosby and CF executive Ben Kain.
Transactional tax advice was provided by RG’s tax partner Simon Whiteside and tax director Simon Hopwood.
Legal advice to the management team was provided by Sintons, led by partner and head of corporate, Adrian Dye and supported by Sophie Townes.
NatWest was advised by Muckle and Addleshaw Goddard with property valuations undertaken by George F White.
Paul and Gayle Jackson received legal advice from partner Luke Philpott and solicitor Max Gilchrist of the corporate team at Mincoffs Solicitors, with tax advice from Tony Tomlin, director at Debere Ltd.
Carl Swansbury said: “An MBO is the perfect way to secure the long-term future of PDQ Engineering, led by a management team that has been at the heart of the business for some time. This is a great example of the high-quality engineering capabilities that exist in North East England that have continued to evolve to meet the latest requirements of industry.”
Adrian Dye, partner and head of corporate at Sintons, added: “We are delighted to assist the management team to successfully complete the buyout. It has been a pleasure working with the team and I am sure, given the strong foundation of the business and combined experience of the management team, that the business will continue to reach its full growth potential.”
Eugene Taylor, commercial director at NatWest, said: “Having proudly provided banking services to PDQ Engineering for some time, we are delighted to support this MBO with funding that will assist with the next stage of the business’ growth. The management team have an intimate and detailed understanding of the business and the approach the founders took to developing PDQ Engineering will ensure of a smooth transition to its new ownership.”
This article was published in Insider Media on 3/10/22
