RG - Ryecroft Glenton

PDQ Engineering Ltd, the North East-based precision engineering specialist, is preparing for its next stage of growth following the completion of a Management Buy Out.

Acquired in 2004 by Paul Jackson, who had been a director since the 1980s, and his wife Gayle Jackson, the business is now owned by its seven-strong management team whose financial contribution has been supported by a seven-figure funding package from NatWest.

From its bespoke built 11,500 sq ft facility in Washington, Tyne & Wear, PDQ Engineering produces component parts for a range of sectors, such as offshore energy and medical industry, using specialist CNC technology.

The business has in-house capabilities to manufacture components from raw materials, including most metals, exotic alloys and engineering plastics, into finished articles and assemblies.

The business has enjoyed strong growth in recent years under the leadership of Paul and Gayle with the support of its management team. In that time the management team has become increasingly involved in the running of PDQ Engineering enabling them to acquire equity.

As a result of the MBO, the management team has acquired all of Paul and Gayle’s shares in PDQ Engineering to take 100 percent ownership of the business.

Led by Commercial Director Richard Mellett, the management team includes Wayne Phipps, David Pearce, Jason Parkes, Gerard Jackson, Chris Leach and Alan Shield.

To support the continued growth of the business, the team will work closely with NatWest, maintaining a long-established relationship as the business’ incumbent banking partner.

Advising the management team on the MBO was Newcastle-based RG Corporate Finance, led by Partner and Head of Corporate Finance, Carl Swansbury and supported by CF Manager Tom Cosby and CF Executive Ben Kain. Transactional Tax Advice was provided by RG’s Tax Partner Simon Whiteside and Tax Director Simon Hopwood.

Legal advice to the management team was provided by Sintons, led by Partner and Head of Corporate, Adrian Dye and supported by Sophie Townes.

NatWest was advised by Muckle and Addleshaw Goddard with property valuations undertaken by George F White.

Paul and Gayle Jackson received legal advice from Partner Luke Philpott and solicitor Max Gilchrist of the corporate team at Mincoffs Solicitors, with tax advice from Tony Tomlin, Director at Debere Ltd.

Richard Mellett, Commercial Director of PDQ Engineering, said: “Our MBO will ensure continuity and will enable us to build upon the excellent growth we have achieved over recent years. Paul and Gayle have been the driving force of the business, recognising the importance of succession, which has enabled the management team to become increasingly involved in the strategic as well as the operational elements of the business in anticipation of this MBO transaction.”

Paul Jackson said: “Gayle and I are exceptionally proud of this business and have complete confidence in the management team who will maintain the high standards we have set, which has enabled the business to carve out a strong position in the supply chains within the industries we serve.”

Carl Swansbury, Partner and Head of Corporate Finance at RGCF, said: “An MBO is the perfect way to secure the long-term future of PDQ Engineering, led by a management team that has been at the heart of the business for some time. This is a great example of the high-quality engineering capabilities that exist in North East England that have continued to evolve to meet the latest requirements of industry.”

Adrian Dye Partner and Head of Corporate, at Sintons, said: “We are delighted to assist the management team to successfully complete the buy out. It has been a pleasure working with the team and I am sure, given the strong foundation of the business and combined experience of the management team, that the business will continue to reach its full growth potential.”

Eugene Taylor, Commercial Director at NatWest, said: “Having proudly provided banking services to PDQ Engineering for some time, we are delighted to support this MBO with funding that will assist with the next stage of the business’ growth. The management team have an intimate and detailed understanding of the business and the approach the founders took to developing PDQ Engineering will ensure of a smooth transition to its new ownership.”

ENDS

NEWS RELEASE: ISSUED ON BEHALF OF RG CORPORATE FINANCE

For further information contact Jamie Collis 01325 363436

Editors’ Notes:

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