Deal Description

We are currently representing a long-established niche Engineering business in defense and advanced materials that is currently looking to divest its precision machining business. The organization has built a strong reputation over a period of three decades as a supplier of safety-critical, machined brass, steel parts, and assemblies into cryogenic gases and emission hoses for vehicle emission control industry. With a strong track record of over 30 years and a class A supplier to the European Cryogenic Gas Sector this division provides an opportunity to establish a footprint in the UK/EU Market and leverage on the existing efficiency of their high quality CNC operations. The division predominantly manufactures brass and steel machine components and assemblies used in the delivery and containment of compressed gases. The business has generated an average of GBP 950K (approx. 10 Cr) of sales for the past three years. It is cash generative, achieving an averaging gross margin of 43%. Covid restrictions have had a limited impact on sales and performance, with demand from the medical sectors sustaining the business. Please note: The acquisition includes all the assets of the business along with their existing contracts with blue-chip customers. There will be no liability to be taken over, however, the assets have to be transferred to the acquirer's entity. The current operations are based out of the UK and the seller will ensure the business is transferred seamlessly to a buyer in India.

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