Pierce advises on cross-border MBO of NR (Automatics) Engineering Ltd

Blackburn-based corporate finance specialist Pierce has advised on the management buyout of NR (Automatics) Engineering Ltd, a Colne-based (Lancashire) global provider of precision engineering equipment.

NRA Engineering Group Ltd, a newly established company, will now be owned by a management team consisting of Martin Hardisty, managing director, and Mark Stinchon, operations director.

The cross-border buyout also included the acquisition of NRA Holdings Ltd and NR Group Ltd, which includes NR Hytech, a 50 per cent subsidiary based in India.

The Pierce team, retained as advisers by NR Engineering for a number of years, was led by corporate finance director, David Sharpe.

NR Engineering was established in 1977, and now boasts a 25,000 sq ft UK facility on Skipton Road in Colne. It has a turnover of £6million and 86 staff.

Specialising in turned components for use in equipment including hydraulics, gearboxes and valves, the business supplies earthmoving equipment manufacturers, the medical industry, aerospace and oilfield equipment manufacturers. Exports represent a significant proportion of turnover.

David Sharpe of Pierce said: “It’s fantastic to see transactions like this taking place in the North West. We are delighted to have advised on this transaction and worked hard to ensure the right deal was structured for them and all other parties. The MBO will enable the business to achieve its full potential.”

Martin Hardisty of NRA Engineering Group Ltd added: “The business plan that has been created for the MBO has identified a number of potential opportunities for us to explore in the near future. We will also be keen to make the most of developments in our Indian plant.”

He concluded: “Due to the complexity of the deal and considering the cross border transactions with India, we were delighted to have had David’s team on board.

The financial advice we have been given by Pierce has been vital. Their understanding of our sector and the Indian operation was crucial and they identified the best structured deal to suit all parties, helping us complete efficiently and effectively.”

The deal, completed for an undisclosed sum, was backed by RBS Invoice Finance and Lombards.

Legal advice was provided to the MBO team by Sonio Singh, partner at Davis Blank Furniss, and Debbie King at Farleys for the vendors.

Sonio added: “It is terrific to see the North West continue to thrive in this sector, despite a challenging market. This was an acquisition that was not without its complexities and needed to be completed in a fairly urgent timeframe.

“I’m pleased to say this was achieved and there are now some exciting times ahead for the MBO team and the wider NRA Engineering Group.”

Debbie King said: “We have worked with the previous owners, NR Engineering Limited, for a number of years on various corporate and property transactions. It is great to see the firm being passed on the next generation – we hope the new directors will take the company from strength to strength.”