Industrial sector comment December 2012

Date

November saw the completion of the management buyout of Greenray Limited, a provider of after-market services to industrial gas turbines. Greenray, which is based in Lincoln with a site in Aberdeen, has customers in over 30 countries predominantly from the oil and gas and power generation markets. The company which employs 60 people and is expected to turnover £20m for the year ending April 2013, serves both the offshore and onshore gas turbine markets. In recent years, the company has experienced significant growth, winning important contracts, and therefore putting the business in a strong position to move forward.

The deal was led by Managing Director Iain Lister with support from Sales Director Neil Langdown and Finance Director Alison Highet.

Clearwater acted on behalf of the management team to secure the transaction.

Deals

Fuchs Lubricants (UK) plc, a subsidiary of German Fuchs Petrolub AG, has acquired the business and assets of CNC Fluids Limited, a Bristol based supplier of metalworking fluids. The acquisition forms part of Fuchs’ ongoing strategy to develop the UK arm of its business and will strengthen the company’s product portfolio and extend the customer base.

The management team of Lincoln based Greenray Ltd, a provider of after-market services to industrial gas turbines, has completed a management buyout led by Managing Director Iain Lister. The company has seen significant growth in recent years and is expected to see further growth in the next five years as demand increases for aftermarket services.

Dynasafe Area Clearance Group GmbH has acquired MineTech International Ltd, a UK provider of landmine clearance and explosive ordnance disposal services. MineTech’s business is very complementary to Dynasafe’s existing service offering.

The management team of The Engineering Technology Group Ltd, which supplies high specification machine tools and fixtures and provides engineering services to the automotive, aerospace and other specialist manufacturing sectors, has acquired the business in a management buyout funded by Santander Corporate Banking. The business has enjoyed strong growth in recent years driven by major capital investment programmes at automotive companies such as Jaguar Land Rover.

Siemens AG has entered into an agreement to acquire Invensys Rail, the rail automation business of Invensys plc for approx. £1.7bn. The acquisition is in line with Siemen’s 2014 programme to strengthen the company’s core activities and will expand Siemen’s presence in the growing global rail automation market.

Jost Group SA has acquired Edbro plc, a company engaged in hydraulic lifting equipment and the market leader in hydraulic systems for commercial vehicles. The acquisition expands Jost’s product portfolio for commercial vehicles to incorporate hydraulic cylinders and systems.

Spectris plc has agreed to acquire Analytical Spectral Devices Inc, a leading manufacturer of Near-Infrared (NIR) instrumentation solutions and applications expertise for materials measurement and research. The acquisition is in line with Spectris’ strategy to grow the business through acquisition of complementary businesses. ASD will become part of the Materials Analysis segment and will be integrated with PANalytical.

CCL Industries Inc, has agreed to acquire John Watson & Co.Ltd, a producer of labels for leading distillers of Scotch whisky and other spirits. The acquisition will complement the global network of CCL Label Wine & Spirits operations in Australia, Asia, Latin America, South Africa, the UK and the USA.

Mittal Investments SARL is to acquire a portfolio of Tarmac Ltd and Lafarge SA’s construction materials operations in the UK and Tarmac’s 50% ownership interest in Midland Quarry Products Ltd for up to £285m from Anglo American plc and Lafarge SA. The transaction is a major step towards finalising a joint-venture between Tarmac and Lafarge which will create a new, leading UK construction materials company.

BAE Systems plc is to acquire Marine Hydraulics International Inc, a marine repair, overhaul and conversion company that operates a shipyard, pier and waterfront facilities in Norfolk, Virginia. The acquisition will complement BAE Systems’ support to its customers with enhanced readiness and sustainment maritime services and is in line with BAE’s strategy to grow in the maritime industry.

Spirax-Sarco Engineering plc through its subsidiary Spirax-Sarco Chile Limitada has acquired the business and assets of the steam speciality business of Chile based Termodinamica Limitada. Termodinamica is Spirax Sarco’s exclusive distributor for Chile and the additional technical and market support provided by Spirax will enhance the company’s market position.

Ricardo plc has acquired AEA Technology plc, an environmental consultancy providing technical consultancy services and a subsidiary of AEA Technology Group plc, from administration for £18m. The acquisition will provide Ricardo with an environmental consulting capability and will enable the enlarged group to uniquely position themselves to advise on key strategic issues facing industry and governments worldwide.

Bradley Lomas Electrolok Ltd has acquired JHS Integrated Systems Ltd, a UK provider of security systems. The acquisition strengthens Bradley Lomas Electrolok’s integrated security and fire solutions division.

The management team of Premier Hytemp Ltd, a Scottish manufacturer of alloy components, has acquired the company in a management buyout led by Chief Executive Donald Wilson and backed by Dunedin Capital Partners Ltd. Wilson wants to expand the company across South American, US and Middle Eastern markets with more investment in product ranges and engineering capabilities.

The Polestar Group Ltd has acquired the business and assets of Benhamgoodheadprint Ltd (BGP) and Stones The Printers Ltd, both printers of magazines and retail catalogues. The acquisitions will enhance Polestar’s product portfolio and extend client service offering.

Graphic Packaging Holding Company Inc has acquired Contego Cartons Ltd, a UK food and consumer product packaging company. The acquisition will provide Graphic Packaging with a leading position in the European food and consumer products folding carton market whilst extending the product portfolio. The transaction provides an exit for Platinum Equity LLC.

The management of DMN Installations Ltd, a UK provider of network engineering and support services to the telecoms industry, has acquired the company in a secondary management buyout backed by US fund Gores Small Capitalization Partners LP. The transaction which provides an exit for UK private equity firm NVM Private Equity Ltd, is in line with Gore Group’s strategy to expand in the mobile communications services market.