London-based investment firm RDCP Group (RDCP) has acquired one of the UK’s largest precision engineering groups, Pexion Group, at a £34 million valuation.
The deal gives RDCP a 75% stake in this £55 million turnover and £7 million EBITDA business. RDCP is also providing Pexion with a £15 million acquisition facility to support bolt-on acquisitions and grow EBITDA to over £20 million within 5 years. The transaction was brought to market by Interpath Advisory and incumbent lender HSBC continues to support the business.
Established in 1986 and headquartered in Chorley, Lancashire, the Pexion Group is a diversified group of high value precision and electronic engineering businesses. It has grown successfully and executed a buy-and-build strategy with HSBC.
The business operates with 16 subsidiaries, offering a one stop engineering solution to some of the world’s biggest original equipment manufacturers and tiered supply chain providers. Services include design, development, prototyping, medium to high volume production with fully integrated supply chain solutions. Clients operate across the aerospace, defence, oil and gas, precision automotive, power generation and medical industries.
Dave Brindle (Chief Executive Officer) and Darren Turner (Chief Commercial Officer) will continue to lead the business as management and shareholders. Both will work closely with RDCP founders, Sameer Rizvi and Iryna Dubylovska. The acquisition of Pexion Group increases RDCP’s assets under management to $600 million, with 2,800 staff members in the UK.
Sameer Rizvi, Founder & CEO of RDCP Group explained: “Pexion is an important acquisition for RDCP Group as it gives us immediate and deep access to UK’s precision engineering and precision manufacturing sectors, which typically have high barriers to entry. In addition, we have competed with Pexion a few times on potential acquisitions, where Pexion ultimately won the deal. Hence, I could not be more pleased to now join forces with Dave and Darren and continue this buy-and-build journey together to grow Pexion’s valuation to over £200million within the next 5 years.”
Dave Brindle, CEO of Pexion added: “The deal represents a significant milestone for the Pexion Group and will enable us to continue our growth trajectory and better serve our loyal and expanding customer base. The Pexion Group has a fantastic foundation, through its world class competences supported by a dedicated and committed workforce. We look forward to the challenge of delivering the next phase of our evolution.”
Chris Wise, Director at Interpath Advisory said: “We are delighted to have advised the Management team on this complex transaction. This deal allows the business to continue their growth strategy with the highly acquisitive RDCP Group. There are some exciting growth plans for the Pexion Group. We wish Darren, Dave, Iryna and Sameer all the best and look forward to following their journey.”