Growing Tyneside engineering group NTG is expanding its capabilities and resources after a deal to acquire fellow North East firm ABS Precision.
Longbenton-based ABS, which supplies global customers in the hydraulic bolting markets, will join the NTG group of companies and continue to scale its operations as part of a larger business.
NTG said it would support ongoing investment in people, technology and business development functions that would help ABS grow its market presence in specialist industries including hydraulic bolting, electric vehicle and precision engineering.
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Based in a 20,000 sq ft facility in Longbenton, ABS employs 45 skilled and experienced staff, and has developed a reputation for producing high quality components and systems. It also develops components for applications in the electric vehicle market – one of the synergies between ABS and NTG that will present mutual growth opportunities for the two businesses.
ABS was established in 2004, with its founders remaining majority shareholders.
The North Tyneside firm has been looking for an acquirer that could secure the future of the business and help it grow, leading to the founders selling their stake to NTG with the management team, under managing director Chris Ainsley, remaining to deliver its scale-up strategy.
NTG’s acquisition of ABS is supported by its investors led by Ignite Growth LLP, the private equity firm that acquired a majority stake in the company as part of an MBO in early 2021.
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NTG, a components manufacturer for sectors including offshore energy, automotive, defence, food production and power generation, recently announced plans to move to a new 45,000 sq ft facility in Gateshead, which will support the expansion of its capabilities and give it room for future business and additional skilled engineers.
Mike Hutchinson, managing director of NTG Holdings Limited, said: “There are some excellent synergies between the two businesses, which together will provide a wider client base with complementary and expanded capabilities.
“The cultures within the two organisations are remarkably similar, which will ensure a smooth integration and enable us to quickly get on with scaling ABS further, while helping to further build NTG’s capabilities with the skills and technologies that exist in our newly acquired business.
“We are looking forward to working with Chris and his team and to take the opportunity to showcase the combined technical abilities that exist across the NTG Group with our respective customers who will benefit from our collective expertise.”
Providing legal advice to NTG was Tim Nye, partner at Trowers & Hamlins and Marc Allison, partner at Weightmans. Financial due diligence was provided by Lyn Calder, partner at Anderson, Anderson & Brown. ABS was advised by David Wilson, corporate finance director at Clive Owen LLP, who introduced the two companies, with legal advice from Richard Butts, corporate partner at Ward Hadaway.
Marc Allison, partner at Weightmans LLP, said: “We are delighted to continue to support the growth of NTG Group, working with Ignite Growth and investor’s legal advisors Trowers. The acquisition is a significant step forward in NTG’s plans for growth and further highlights the engineering expertise that exists in North East England.”
David Wilson, corporate finance director at Clive Owen LLP, said: “The acquisition of ABS is a clear indication of the hugely ambitious growth plans of NTG. It has been an absolute pleasure introducing two exceptional North East businesses and delivering a transaction that will benefit not only ABS, but also the wider NTG group and all of their stakeholders.”