KG Coating Ltd
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KBS Corporate Finance has advised on the £2.3m acquisition a highly reputable specialist subcontract coating company. The business was acquired by SPS Technologies Limited, the UK subsidiary of Oregon-based global corporate, Precision Castparts Corporation (‘PCC’). PCC has a strong UK presence and made the acquisition in order to have complete control of the supply chain.
Formed in 1995, KG Coating offers a coating service applying aluminium and polymer coatings for corrosion prevention and dry lubrication offering services to a range of sectors including aerospace, defence, industrial, oil and gas, electronics and automotive.
Holding particularly strong ties with UK aircraft manufacturers; the company’s IVD Aluminium coating service is specialist and has only one competitor in the UK, with an additional one in Germany.
The £1.45m turnover company attracted interest from as many as 30 interested parties generating 9 separate buyer meetings and 5 offers. Among the potential acquirers were 4 major overseas trade buyers from the United States, the Netherlands, India and France.
The acquirer specialises in the design and manufacture of high performance and high strength fasteners for critical applications and severe environments. The £80m turnover business has been an industry leader for over 100 years, creating new materials, designs, and manufacturing practices to satisfy the changing needs of their customers.
Guy Haynes, Senior Deal Executive at KBS Corporate Finance assisted on the deal and Said: “Our client had previously purchased the business in 2013, and decided to investigate the option of selling after noticing improving market conditions within the aerospace industry. He was impressed by our performance last time, prompting him to pursue a sale through our services once the time was right. The deal with SPS offered Gavin a significant return on his original investment, and we are delighted to have played our part in making this possible.”