RD Capital Partners continues industrial plan by acquiring engineering firm

RD Capital Partners has bought a mechanical engineering services firm providing services to a number of blue-chip clients.

Barton-upon-Humber-based Grayton was established in 1992, and services UK and European markets from two workshops totalling more than 7,000 sq ft.

It works with blue-chip clients across the UK including Tarmac, Ensus British Steel, British Sugar, Tata Steel, P66, Breedon and Vivergo Fuels. Its main specialisms are industrial rotary plant including survey, diagnostics, maintenance and installation.

It is a £17.6 million turnover business, employing 130 staff and delivering adjusted EBITDA of £3.2 million in 2023.

RDCP, a London-based diversified investment group, has acquired an 80 per cent stake in Grayton, backing Carl Meale and Richard Southee as incoming joint managing directors and 20 per cent shareholders in the business.

Finance for the deal was provided by Beach Point Capital (BPC) represented by Shane Lanigan, Seth Vaughan, and Jakob Nilsson. This is BPC’s second time supporting RDCP after backing the acquisition of Alma Rail in 2022.

RDCP is led by founder and chief executive Sameer Rizvi and supported by a senior management team of Iryna Dubylovska, Martin O’Donoghue and Paul Clunn. The deal forms part of its strategy to strengthen its presence in the UK industrials sector through acquisitions.

Rizvi said: "We are delighted to have completed the acquisition of Grayton. Richard Marshall and Peter O’Sullivan have built an outstanding engineering firm while supporting the next generation of leadership in Carl Meale and Richard Southee. We are particularly excited to back Carl and Richard as they jointly lead the business into its next phase of growth. This acquisition also brings significant synergies with other RDCP portfolio companies, such as RDCP Electrical and MCS Group."

Carl Meale, incoming joint managing director at Grayton, said: "This is a pivotal moment for Grayton, and I would like to express my gratitude to Peter O’Sullivan and Richard Marshall for their dedication to the business and their ongoing support as they continue with us for the next few years before their retirement. I have been with Grayton for over 18 years and in that time we have always looked to the future and made strong plans for all our clients and staff members alike."

Meale said the group remain firmly committed to expanding its presence both in the UK and Europe. "It is business as usual as we look ahead to meeting the growing demand for our services," he said.

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