Birmingham-based Arc Specialist Engineering has undergone a management buy-out (MBO) just four years after being rescued from administration.
Greybull Capital, the British-based family investment office, has agreed the sale of Arc to the company’s management, backed by Mobeus Equity Partners.
Arc is the global market leader in the production of high quality non-stick coated steel for the bakeware industry through its Cooper Coated Coil division, in addition to being the UK market leader in the production of rolled steel products for the fenestration industry through its EWS division.
Greybull acquired Arc, then an AIM listed entity called Metalrax plc, out of administration in April 2013. Greybull’s acquisition secured the jobs of the company’s 400 employees and has since provided the support required to turnaround the business.
As part of the turnaround plan, the company refocussed on its core businesses, disposed of non-core units and made strategic acquisitions to further strengthen the company’s offering to its customers.
Greybull partner Nathaniel Meyohas said: “We are very pleased with such a successful outcome for this historic UK manufacturer following our acquisition and successful turnaround since 2013.
“This is testament to Arc’s dedicated team, as well as a demonstration of Greybull’s ability to bring its expertise to bear to achieve the right outcome.
“Over Greybull’s four years of ownership we have invested time and resource to ensure Arc’s management had the necessary support to turn around this fundamentally strong business.
“We are delighted that with the support of Mobeus, the current management team, led by Andy Richardson, will be taking the business forward, further building on the strong foundations put in place in recent years.”
Arc CEO Andy Richardson added: “The past four years have seen a transformation of Arc into a profitable growing business, with hundreds of jobs saved along the way, all made possible by much-needed investment in our manufacturing capabilities.
“We are immensely excited about the next stage of our journey, which would not have been possible without Greybull’s guidance and support. We are very grateful for everything which they have committed to the business.”
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