Llandarcy headquartered Hornbill Engineering has been acquired by energy and utilities group OCU.
Hornbill, which also has offices in Neath, Mold and Pembrokeshire with a workforce of 120, operates globally with clients across the power, water, gas, rail and other sectors. It specialises in designing and building electrical infrastructure for high-voltage and low-voltage renewable energy projects. The deal, the value of which hasn’t been disclosed, will see the business becoming part of OCU’s energy services division, which focuses on engineered power system network solutions to deliver renewable energy and decarbonisation infrastructure.
Hornbill founder, Russell Scaplehorn, said: “We are delighted with the outcome of the transaction process and believe that OCU will be an excellent partner for the business going forward.”
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The deal provides an exit for SME Finance Partners which backed a management buyout of Hornbill two years ago.
Hornbill will become known as OCU Hornbill. Michael Hughes, chief executive of OCU Group, said: “The acquisition of Hornbill was an obvious choice for OCU Group, offering the business access to a highly skilled workforce and reinforcing our reputation as an engineering-led organisation."
Operations director Gavin Murray becomes OCU Hornbill’s managing director with all Hornbill staff being retained by OCU Group. Stockport-based OCU is backed by private equity firm Triton Partners. It recently posted revenues of £295m, up 34% on the previous year.
Professional advisory firm Grant Thornton acted for Hornbill on its sale.
Grant Thornton corporate finance director Jamie Roberts added: “Hornbill Engineering is a first-class business right at the heart of critical energy security and energy transition initiatives. Its highly specialist engineering skill set, comprehensive stable of accreditations, and longstanding customer base underpin its reputation for quality built over decades of trading and it has been a pleasure advising the shareholders on this successful transaction.
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“OCU Group emerged during a highly competitive sale process as a strong strategic partner for Hornbill. This acquisition will further strengthen OCU’s presence across Wales and the south west whilst also expanding its capabiity in the renewables and decarbonisation space.”
The Grant Thornton corporate finance team also included Andrew Charter, Thomas Bew and Elisabeth Lubin. The firm’s tax team led by partner Richard Marsh assisted by Hannah Jones and Tom Davies also advised the vendors. Capital Law acted as legal advisors to the shareholders.
Darren Edwards, co-founder of SME Finance Partners, said: “This is a great outcome for all parties, and I’m particularly pleased for Russell who deserves every success having founded the business over 30 years ago.
“Grant Thornton was first class on this transaction, instrumental in delivering an excellent outcome for the shareholders, and I’d like to thank Jamie Roberts and his team for all of their work on this. “
The deal is OCU’s eighth acquisition in 18 months.