A North East engineering firm is preparing for growth following a management buyout backed by a seven-figure funding package.
PDQ Engineering Ltd was acquired 18 years ago by Paul Jackson and his wife Gayle, more than 20 years after Mr Jackson first became a director at the business. Based in a 11,500 sq ft facility in Washington, PDQ Engineering produces component parts for a range of sectors, such as offshore energy and medical industry, using specialist CNC technology.
The company, which manufactures components on site from raw materials, has now been bought out by its seven-strong management team, which has acquired all of Mr and Mrs Jackson’s shares to take 100% ownership, with their financial contribution supported by a seven-figure funding package from NatWest.
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Led by commercial director Richard Mellett, the management team includes Wayne Phipps, David Pearce, Jason Parkes, Gerard Jackson, Chris Leach and Alan Shield.
Mr Jackson said: “Gayle and I are exceptionally proud of this business and have complete confidence in the management team who will maintain the high standards we have set, which has enabled the business to carve out a strong position in the supply chains within the industries we serve.”
Mr Mellett said: “Our MBO will ensure continuity and will enable us to build upon the excellent growth we have achieved over recent years. Paul and Gayle have been the driving force of the business, recognising the importance of succession, which has enabled the management team to become increasingly involved in the strategic as well as the operational elements of the business in anticipation of this MBO transaction.”
Advising the management team on the MBO was Newcastle-based RG Corporate Finance, led by partner and head of corporate finance Carl Swansbury and supported by Tom Cosby and Ben Kain. Transactional tax advice was provided by RG’s Simon Whiteside and Simon Hopwood. Legal advice was provided by Sintons, led by partner and head of corporate Adrian Dye and supported by Sophie Townes.
NatWest was advised by Muckle and Addleshaw Goddard with property valuations undertaken by George F White. Paul and Gayle Jackson received legal advice from partner Luke Philpott and solicitor Max Gilchrist of the corporate team at Mincoffs Solicitors, with tax advice from Tony Tomlin, director at Debere Ltd.
Mr Swansbury added: “An MBO is the perfect way to secure the long-term future of PDQ Engineering, led by a management team that has been at the heart of the business for some time.”
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