Seven-figure funding will allow business to expand.
Finance Birmingham has invested £1.2 million as part of a multi-million pound funding package for Tamworth-based manufacturer Precision Technologies International Limited. The deal enables the company to be sold to a management team led by experienced entrepreneur Kevin Parkin.
Supported with funding from Finance Birmingham, Panoramic Growth Equity, Management and Santander Invoice Finance, the deal sees current management Colin Palin and Patrick Walker invest with Kevin Parkin, who becomes chief executive of PTI, to acquire the business as part of a buy-in management buyout transaction.
PTI has more than fifty years experience in the manufacture of specialist precision parts across a range of sectors including Formula One, medical, oil and gas and aerospace. The funding will see the firm increase its current offering and develop to enter new markets such as nuclear and defence. At least 15 new highly skilled jobs including a number of apprenticeships will be created.
Ian Fairclough, Investment Director at Finance Birmingham, said: “PTI has an excellent reputation for producing high value components for a wide range of clients. The workforce is highly skilled and this, combined with the business’s ability to collaborate with its customers, allows it to design and manufacture unique components to suit a variety of needs.
“The company’s potential to strengthen its offering is evident through its plans to drive revenue, not only with its existing customers, but by entering new markets. The support from Finance Birmingham will accelerate this by allowing the business to invest in the additional staff and operations needed to do so.”
The investment has been provided by Finance Birmingham as part of the £56 million Mezzanine Fund – open to any SME across the West Midlands and supported by the Regional Growth Fund.
Kevin Parkin, CEO at Precision Technologies International, commented: “We are keen to retain high quality engineering expertise in the UK and PTI is certainly at the cutting edge of providing specialist low volume components that are used in extremely demanding conditions.
“To maintain this service from manufacturing to the testing and inspection of products, there is a demand for an engineering expertise that can only be achieved by a dedication to apprentice training and a philosophy of continuous improvement. The support from Finance Birmingham will help us to commit to these areas and to explore new opportunities.”
Legal advice was provided by Nabarro, Freeths, Gateley, Vialex and Irwin Mitchell. Corporate finance was provided by Castle Square Corporate Finance and Seneca, financial due diligence by PwC, commercial due diligence by Carlton Strategic Advisors and insurance due diligence by TL Dallas.