23
The published data shows that there
is a significant breakdown in the
distribution of deal values in the UK
Precision Engineering Market. Cyrus
IM’s research indicates that of the
deals done between 2013 and 2015
for the purchase of UK Precision
Engineering companies, only 10%
were in the value range of £5 million
or less. Additionally, at the £50 million
level and above (the level at which
Cyrus IM aims to sell its aggregated
businesses), there is significant
interest from both investment entities
and other Precision Engineering
companies, giving a valuable scope
for potential interest at exit.
Cyrus Investment Management’s
view is that “the UK Precision
Engineering sector is a market with
significant growth potential and one
in which Private Equity and global
industrial companies are acquiring
more significant stakes. The prudent
investment in best in class Precision
Engineering companies with exposure
to the UK’s world class exporting
industries offers investors diverse
exposure to a market with strong exit
and profit potential. Britain’s World
Class Precision Engineering market
is of significant interest to global
Private Equity funds and international
Engineering companies with over
£4bn of acquisitions on average
completed every year (since 2013).”
DISTRIBUTION OF DEAL VALUES
0.8x Revenue
3.88
APOLLO AEROSPACE
GROUP
JASON CRABTEE AND
ADRIAN ARSCOTT
SUPPLY TECHNOLOGIES
96
UK based, supply chain
management services,
provider of Class C
production components to
aerospace customers
Private individuals
US based, supply chain
management services
SELLER
BUYER
DEAL
VALUE
MULTIPLIER
01/06/2014
06/05/2014
08/04/2014
01/04/2014
ROLLS-ROYCE PLC
ROLLS-ROYCE PLC
SIEMENS AG
97
UK based, gas, turbine and
compressor business of
Rolls-Royce Plc
UK based provider of
integrated power solutions
for customers in civil and
defence energy markets
German based electronics
and electrical engineering
company
785
0.9x Revenue
10.9x EBITDA
1.6x Revenue
14
RMEC LIMITED
MAVEN CAPITAL
PARTNERS UK LLP
98
UK based supplier of
hydraulic engineering
equipment for oil&gas sector
UK based Private Equity firm
21.63
TELESTACK LIMITED
ASTEC INDUSTRIES INC.
99
UK based manufacturer of
mobile, telescopic and radial
stockpiling conveyors
US based manufacturer of
road building equipment
TARGET
DISTRIBUTION
OF DEAL
VALUES
(2105)
£0-5m
> £5-15m
> £15-30m
>£30-50m
>£50-150m
>£150-300
>£300
10% 10%
17%
8%
6%
17%
33%
ACQUIRES IN
DEAL RANGE
£ 50-300m
PE, VC, Funds,
Investment
Companies
Companies
operating in
the same/
similar sector
58%
42%
Identified sale/purchase of UK Precision Engineering companies, April 2014 to June 2015
46
Source: Cyrus Investment Management LLP
46
