Geert Struyven

Manufacturing sector shoing positive signs

An increase in confidence for an export-led economic recovery has seen the Corporate Finance team in Crowe Clark Whitehill’s Tunbridge Wells office experience an increase in acquisition activity within the manufacturing sector.

As well as seeing a rise in enquiries from prospective vendors and purchasers, the team has just completed advising on the purchase of Milton Keynes-based manufacturer Europtica International Limited by Surrey-based Bridgwater Bros Holdings Limited (BBH).

Europtica produces re-circulation, filtration and chilling machines used in lens production laboratories all over the world, notably supplying key customers in America and Japan for many years.

The company’s export success has just seen it deliver its first orders to Korea and Australia. With the founder owner wishing to retire, BBH made an offer, which provided the resources to support further growth, whilst allowing for such a withdrawal.

The acquisition of Europtica, which reported a net profit margin of 31 per cent in its most recent accounts, will allow BBH to expand its existing portfolio of niche companies and take annual group sales through the £10 million barrier.

Crowe Clark Whitehill advised on all aspects of the deal, leading BBH through the investment process and advising on specific areas of negotiation.

George Reynolds, BBH managing director, said: “In recent years, Europtica has expanded its offering to a number of new overseas markets, and it is probable that other UK businesses will have to follow this example, with future growth needing to be driven by increased exports, notably outside the EU.

“Crowe Clark Whitehill’s specialist experience and due diligence was invaluable in helping us identify and address key deal issues, enabling us to complete the transaction within a tight timeframe whilst maintaining an amicable relationship with the vendor.”

Geert Struyven, corporate finance partner at Crowe Clark Whitehill, said: “In the case of Europtica, the acquisition provided an excellent opportunity for BBH to build upon the success already achieved bythis well-managed company and develop it further into overseas markets.

“This is also reflective of an increased level of activity and interest in the manufacturing sector, with potential investors particularly interested in companies who have a uniquely engineered or designed product.”