DRB Holdings Ltd, and its subsidiary DRB Engineering Ltd (DRB Engineering/the Company), has been acquired by Walsall Pressings Company Ltd.
Birmingham based DRB Engineering is a £6 million turnover, highly regarded and well respected provider of comprehensive metal pressing, manufacturing and toolmaking services. Operating through two divisions, DRB Engineering and Holloway Tool, the Company has extensive experience as a tier 1 supplier to consumer electronics and industrial products manufacturers and serves a high end, blue chip customer base, boasting developed relationships with Xpelair, Redring, Baxi (Valor Fires) and Panasonic. The Company also has tier 2 supplier relationships in the automotive industry, serving Nissan, Toyota, Jaguar, Land Rover and Bentley.
Walsall Pressings boasts an annual turnover in excess of £33 million and specialises in the design, development and manufacture of technical metal presswork, robotic welding and mechanical assemblies for customers spanning a diverse range of market sectors including automotive, communications and domestic appliances.
The Sellers were advised by KBS Corporate throughout, and by Gateley LLP during the legal process.
Walsall Pressings initially approached KBS Corporate through the Businesses For Sale website having seen the confidential advert listing for DRB Engineering. Upon establishing the business listed was DRB, it became apparent that Walsall Pressings was actively and directly involved with DRB as a major customer.
Cash rich, Walsall were able to fund the deal through the company’s bank account in a straightforward Cash at Completion transaction, with a small additional dividend payable to the exiting directors upon certain conditions being met. The freehold premises and the mortgage secured against the freehold, was held by DRB Holdings Ltd and remains with the company under its new owners.
Guy Haynes, Senior Deal Executive at KBS Corporate was able to bring four offers to the negotiation table, including that of Walsall Pressings. Although the total quantum on offer from Walsall Pressings was not the highest, the other deals, all from MBI candidates, offered significant risks in terms of stringent funding requirements and deferred consideration. Led through negotiations by Guy, in the end it was decided that Walsall Pressings offered the most deliverable deal and the best chance of realising the shareholders’ aims. The close relationship already in place between buyer and seller further strengthened this position.
Guy Haynes said, “From the outset there was significant interest in DRB Engineering, meaning that we were able to launch a competitive bidding process within 3 months of going to market. Although there were some very respectable bids from a number of other sources, Walsall Pressings was always the most obvious option on the table, given the fruitful relationship that the two companies already enjoyed. Because of this existing relationship and Walsall Pressings’ infrastructure, this deal was also best able to fulfil 3 of the shareholders’ wish to retire quickly. Although negotiations took longer than we would have liked, and were difficult at times, the good relationship between all parties remained.”