management buyout of £22.5 million for Birmingham-based energy group
Mid-market private equity investor LDC has backed the £22.5 million management buyout (MBO) of Precision Micro, a photo-chemical etching company, from global aerospace, defence and energy group Meggitt.
As part of the deal, LDC has invested £13 million of equity for a significant stake in the company, supporting a management team led by current managing director Ian McMurray.
Operating from its state-of-the-art processing plant in Erdington, Birmingham, Precision Micro manufactures more than 50 million high-precision metal components each year for major global manufacturing customers across multiple markets.
Ian McMurray, managing director of Precision Micro, said: “We see enormous opportunity across our markets as equipment manufacturers look for ever-more cost-effective, reliable, safe and high-performing components. Securing the backing of an experienced and supportive partner like LDC means we can invest further in the business, leveraging our unrivalled technical expertise and processing capabilities to further support our customers around the world with increasingly sophisticated requirements. This is an exciting time for our team as we invest in our future growth.”
Precision Micro’s pioneering photo-chemical etching process provides a cost-effective alternative to traditional sheet metalworking when machining precision parts from thin gauge metals.
Chris Handy, Investment Director at LDC, added: “Precision Micro’s reputation for technical excellence, service and innovation is world-class. Our investment is all about helping Ian and his team unlock the business’ potential by facilitating further investment in its processing capabilities, manufacturing capacity and new product introduction (NPI), helping it stay ahead of its market.”
With offices in Germany and The Netherlands, over 75% of its £15m sales come from overseas markets.