An Ayrshire manufacturing group has undergone a management buyout (MBO) after securing £4.5 million in funding, as it aspires to introduce new technologies and drive growth.
Precision Tooling & Castings, which incorporates three manufacturing businesses, is under new ownership following a finance package from Barclays.
The deal – a combination of invoice and asset finance and term and property loans – has allowed group operations manager Peter Currie, group technical manager Brian Taggart, financial director David Armour and production manager Gary Brese to buy a majority share from the current shareholders.
Under the MBO, Currie will step up to become the new managing director, with Taggart and Brese stepping up to director level.
The group also plans to invest in staff development and improve its service and technologies.
Trio of businesses
Precision Tooling & Castings is the holding company incorporating Glen Foundry (trading as Anderson Stewart Castings), Precision Tooling Services and Advanced Manufacturing Centre.
Glen Foundry employs around 70 staff and produces specialised castings for automotive and oil and petrochemical clients.
Precision Tooling is based at the Prestwick Airport aerospace park and also houses around 70 staff, manufacturing machined components for the aerospace, automotive and energy industries, while Kilmarnock-based Advanced Manufacturing Centre supplies engineering services to the aerospace, automotive, nuclear and rail sectors.
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Currie said: “The management team at Precision Tooling & Castings has a strong understanding of our customers’ needs and the many strengths existing within our business.
“With the support of Barclays, the MBO allows us to invest in developing our workforce, services and technologies even further.”
The Barclays deal team was led by corporate development director Iain Duff and supported by relationship director Stuart McAleese.
Jamie Grant, head of corporate banking for Barclays in Scotland, added: “With plans to grow the business and expand the engineering practices offered, this is an exciting time for everyone involved.
“We are pleased to have been instrumental in realising the next chapter of this diverse company which is a key employer in the engineering and aerospace sector in Ayrshire.”