A castings company with its main base on Teesside has been sold to an international investment group.
Nimbus has acquired the Centrifugal Castings Division of Doncaster’s Group for an undisclosed sum, with the deal including Billingham’s Paralloy Ltd, plus FVC, a firm based in Sheffield.
Paralloy, which dates back to 1967, provides products for a range of companies in the chemicals industry.
The acquisition will see Paralloy’s chief executive Robert McGowan take charge of the firm and use Nimbus’ European footprint to support the companies’ growth and export plans.
Mr McGowan said: “This is good news for our business.
“We are delighted to be working with Nimbus, we believe their background and expertise complements our strong management team and we have a partner that understands us, our business and is excited about our future.
“We continue to focus our efforts on building on the Great British Brands of Paralloy and Firth Vickers Centrispinning (FVC) with renewed vigor, investment and a commitment to deliver best in class products and services to our customers worldwide.
“This transaction will enable us to uniquely position Paralloy and FVC for more growth, expanding our portfolio, capabilities and market reach.”
Nimbus - which describes itself as a “hands-on” investor - has offices in Germany and the Netherlands, plus a UK base in Leeds. It specialises in investments into “industrial companies requiring both capital and management support”.
David Keenan, investment director at Nimbus, led the deal.
He said: “Paralloy represents a great example of UK manufacturing despite these uncertain economic times. The combination of a strong management team, market leading products and stated growth ambition provides the perfect setting for Nimbus to invest.”
Sentio Partners acted as lead financial adviser. Addleshaw Goddard, Eversheds Sutherland, Squire Patton Boggs, Gateley Plc, Freeths & Ward Hadaway provided legal advice to various parties from their North East and Yorkshire offices.
Arbuthnot Commercial Asset Based Lending and Santander UK Plc both provided funding and banking support. BDO provided tax structuring and diligence advice.
