TGM Partners, a firm that specialises in the acquisition, transition and growth of owner-managed businesses, has acquired Automatic Engineers, based in Hinckley, Leicestershire, and Barnsley’s Vesseltec UK.
Automatic Engineers is a component manufacturer with more than 50 years of experience in the aerospace, automotive, rail, energy and renewables sectors, while Vesseltec is an engineering firm specialising in designing and manufacturing pressure vessels for the pharmaceutical sector and other industries.
TGM co-founder Eric Kolodner said: “We are extremely pleased to add Automatic Engineers and Vesseltec into the TGM group as our 11th and 12th businesses. These two acquisitions will bring TGM’s total annual revenue to almost £25m and underscore our four-year track record of providing attractive exit solutions to long-term owners of SMEs in the engineering and industrial manufacturing sectors.
“Our flexible approach to acquisitions is reflected in both deals; the seller of Automatic Engineers is looking to transition out of the business quickly, while at Vesseltec, the seller is planning to continue providing services to the company for the foreseeable future.
“Both businesses will continue to operate from their existing premises and all staff will keep their jobs, to ensure a smooth and seamless transition for employees, customers and suppliers.”
Fellow TGM co-founder Jon Frewin added: “In the coming months, we will provide training to develop the skills and careers of relevant staff members, which reflects our focus on continuity, stability and growth of our acquired businesses.
“These acquisitions allow us to expand our scope of manufacturing/engineering capabilities and services across a broader set of sectors and customers, including serving an increasing number of blue-chip corporates.
“As our business units continue to grow, we are increasingly able to recognise synergies across the TGM group, including through customer cross-selling and the introduction of operational best practices.”
Ian Smith, former owner of Vesseltec said: “I started conversations with the TGM team regarding the sale of my business almost four years ago, before they had acquired any engineering companies.
“With their successful record of building a strong engineering and manufacturing group focused on growth and financial stability, I look forward to being part of the TGM team and being able to execute larger contracts, which will take Vesseltec to a new level. I’m proud to still be involved in making this happen.”
The deals were supported by Mark Roberts, of Achieve Corporation, who was the corporate finance adviser to the sellers for the Vesseltec sale, and James Clinghan and Mike Asquith of Trusted Business Partner Ltd, who provided valuable corporate finance assistance to TGM on both transactions.