Wed, 04 Jan 2023 | BUSINESS SALE
Precision engineering firm Pexion Group, which has grown to £55 million in turnover and operates a buy-and-build acquisition strategy, has been acquired by investment firm RDCP Group in a deal worth £34 million.
The acquisition gives RDCP a 75 per cent stake in Pexion, which generated EBITDA of £7 million in its most recent results. Through the acquisition, RDCP will also provide Pexion with a £15 million facility to help the company continue its buy-and-build growth strategy, with the group looking to grow its EBITDA to £20 million within the next five years.
Pexion Group, which is headquartered in Chorley, was founded in 1986 and has since grown to become one of the UK’s largest precision engineering groups. The group is highly diversified, comprising precision and electronic engineering businesses, and has achieved significant growth through its M&A strategy. The group’s growth strategy has been backed by HSBC, who will continue to support the business post-acquisition.
The group has 16 subsidiaries, through which it serves several major global equipment manufacturers and supply chain providers. The group’s services include medium to high volume production, supply chain operations, design, prototyping and development. Its clients span sectors including oil and gas, aerospace, medical, precision automotive, defence and power generation.
Post-acquisition, Pexion will continue to be led by Chief Executive Dave Brindle and Chief Commercial Officer Darren Turner, working closely alongside RDCP founders Sameer Rizvi and Iryna Dubylovska.
Pexion CEO Dave Brindle commented: "The deal represents a significant milestone for the Pexion Group and will enable us to continue our growth trajectory and better serve our loyal and expanding customer base. The Pexion Group has a fantastic foundation, through its world class competences supported by a dedicated and committed workforce.”
RDCP Group founder and Chief Executive Sameer Rizvi added: "Pexion is an important acquisition for RDCP Group as it gives us immediate and deep access to UK's precision engineering and precision manufacturing sectors, which typically have high barriers to entry. In addition, we have competed with Pexion a few times on potential acquisitions, where Pexion ultimately won the deal.
"Hence, I could not be more pleased to now join forces with Dave and Darren and continue this buy-and-build journey together to grow Pexion's valuation to over £200million within the next five years."
The deal was brought to market by Interpath Advisory, with Interpath director Chris Wise commenting: "We are delighted to have advised the Management team on this complex transaction. This deal allows the business to continue their growth strategy with the highly acquisitive RDCP Group. There are some exciting growth plans for the Pexion Group.”
Read about the growth in bolt-on M&A activity in the wake of the COVID-19 pandemic.
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