Altec Engineering, an engineering solutions provider based in County Durham, received a £6m investment from BGF to support its buy and build strategy and organic growth. The first investment was the acquisition of neighbouring business Ronco Engineering.
Altec Engineering designs and manufactures special purpose equipment and manufactures high precision CNC components for the automotive, aerospace, mining, defence and oil & gas sectors. Ronco Engineering is a precision engineering company based in Tanfield Lea, County Durham. Founded in 1992, it provides CNC manufactured parts to customers such as Caterpillar and JCB.
Altec Engineering is led by an experienced team and its major shareholder Alastair Waite, who acquired a majority stake in the business from his father. Altec acquired Yorkshire based Sigma Technologies in November 2014. Altec Engineering plans to scale-up its business through accelerating its organic growth plans following the expansion and investment into its Durham site last year and the delivery of new value-added services such as specialist coatings and through further strategic acquisitions.
David Bailey, former vice president of Parker Hannifin Europe, was appointed to the role of non-executive chairman following an introduction made by BGF.
Teesside-based Chemoxy, one of Britain’s fastest growing, independent contract and speciality chemical manufacturers, received a £10m growth capital investment from BGF . At the same time, The Royal Bank of Scotland (RBS) via its Complex Transaction Execution team in Leeds provided a £10m new working capital facilities taking the total funding package to £20m.
Chemoxy operates from two sites in Teesside. It provides specialised manufacturing services to a wide range of large blue chip companies in the chemical and oil and gas industry. In addition, it has developed its own portfolio of low-toxicity solvents – including its successful Coasol range – used in environmentally friendly paints, industrial coatings and cleaning products.
The business has experienced rapid growth since it was acquired from Dow Chemicals in 2011 in an MBO led by Chief Executive Ian Stark and Chief Operating Officer Martyn Bainbridge, increasing turnover from £34m to around £50m today. To date, the team has invested more than £10m in new plant and acquired new land at their Billingham site in preparation for future growth.
More than 130 people including chemical engineers and apprentices are employed, of which 32 percent are graduates/ PHDs. Its international presence continues to grow with around 60 percent of the chemicals produced or processed at the two sites shipped to overseas markets.
The business will use the new funding package to make further investments in capital and plant over the next four years in order to increase capacity, expand its product and service range and drive growth. Chemoxy’s management team has an ambition to grow revenue to in excess of £100m by 2020.
Barry joined BGF in September 2013 and is based out of Leeds, covering the Yorkshire & North East region. As an Investor, Barry’s main role is to originate, execute and deliver new investment opportunities whilst at the same time retaining involvement through board interaction with his previous investments. He currently holds a number of non-executive board positions within the region.
Prior to joining the BGF, Barry spent 11 years at Deloitte in Leeds including 8 years in the Corporate Finance Advisory team where he gained extensive experience working on a range of transactions including private equity buy-side, sell-side, corporate transactions and other strategic advisory work.
Barry is a qualified Chartered Accountant and a member of the Chartered Institute for Securities & Investment. Prior to joining Deloitte, he gained a degree in Mathematics, Operational Research, Statistics and Economics (MORSE) from the University of Warwick. He lives in North Leeds and is married with two children and outside of work spends the majority of his time with his family and keeps fit by going to the gym regularly.
“I joined BGF because I wanted to work with ambitious entrepreneurs across a wide range of sectors, helping businesses with equity finance in order to unlock the next phase of growth. Our approach means that we build long-term and meaningful relationships with management teams and the growth nature of the companies we back generally means every week is different which provides great challenge and variety.”
- Total Recycling Services (Board Director)
- Altec Engineering (Board Director)
- Chemoxy (Board Director)
- VTL (Board Director)
- Wear Inns (Board Director)