Responsive Engineering, an award-winning engineering firm based in Gateshead, has acquired its neighbour Exact Engineering in a deal backed by Lloyds TSB Commercial.
Clearwater Corporate Finance advised Exact on the deal, which will create a business with 150 employees and a turnover of £14 million. The Clearwater team was led by director Jon Mercer, with support from manager Pete Templeton.
Exact, which was established in 1980 and is based in the Team Valley, is a precision machining specialist with customers in the oil and gas, defence and motor sports sectors, including Formula 1 clients.
Responsive has been operating as a group since 2000 but its subsidiaries have been in business since 1991. These are Kingsway, a precision machining company; Pressex, a pressing firm; Weldex, a precision welder; and Streamline, a laser profiling and water jet cutting specialist.
Responsive was acquired by its management team in 2005, with Clearwater advising on the deal. Since the buyout, the Group has successfully grown organically and won Manufacturing Business of the Year at the 2007 North East Business Awards.
Jon Mercer said: “The deal creates a major sub-contract engineering business and gives Responsive the critical mass to make it a significant regional and national force in the machining industry.”
Muckle LLP of Newcastle provided legal advice to Exact while Hay & Kilner of Newcastle advised Responsive.