Burgis & Bullock (Warwickshire, England) has advised The Engineering Technology Group (“ETGâ€) on its acquisition of the UK machine tool sales, spares, and servicing division of Hardinge Inc. The deal doubles the size of ETG which will have annualised turnover approaching £30m (US$ 45m).
Privately owned, The Engineering Technology Group supplies high specification machine tools and fixtures and provides engineering services to manufacturers in the automotive, aerospace, and other specialist manufacturing sectors. The business has enjoyed strong growth in recent years, driven by major capital investment programmes at automotive companies such as Jaguar Land Rover.The acquisition broadens ETG’s product range which now includes 10 machine tool brands. ETG has revived the famous “Bridgeport†manufacturing name and will trade the new division through a dedicated subsidiary company called ETG Bridgeport.
The vendor, Hardinge Inc, is a global manufacturer of turning, milling, and grinding machines. The company is listed on NASDAQ and in 2012 had total revenues of US$334m.
Engineering Technology Group managing director John Temple commented, “We are delighted that a company with the global reputation and product range of Hardinge has chosen us as its partner. The acquisition and the new arrangements to become sole distributor of Hardinge and Bridgeport products in the UK expands ETG’s offering into new areas with undoubted potential.â€
Simon Chapman of Burgis & Bullock Corporate Finance, who acted as financial adviser to ETG, added, “This is a great success story for Midlands engineering. ETG is well placed for further growth, supporting UK manufacturers that are so vital to the economy of this country. We are delighted to have advised the business over the last three years through a re-financing, MBO, and now this latest transformational acquisition.â€
In early 2011, Burgis & Bullock arranged a re-financing of ETG through Santander Corporate Banking. At the end of 2012, the firm acted as lead adviser on a multi-million pound management buy-out and then a few weeks later mobilized to work on the Hardinge acquisition. This is a great example of the range of M&A services that Burgis & Bullock Corporate Finance can provide to owner-managed businesses that are looking to raise funding and expand.
About Burgis & Bullock
Burgis & Bullock is one of the leading regional firms of chartered accountants and business advisers in the Midlands. Clients include owner-managed businesses, subsidiaries of overseas groups, private equity investee companies, professional firms, charities, and individuals. The firm’s service lines comprise audit and assurance, taxation, accounts preparation and outsourced services, wealth planning, and corporate finance. Burgis & Bullock is a member of TIAG®, a worldwide alliance of independent accounting firms with 182 offices in 66 countries.
