Graham Engineering sold to a2e Industries

Nelson-based manufacturer Graham Engineering Ltd (GEL) has been sold to A2E Industries.

GEL has strong foundations in nuclear product development, with long term production agreements for major clients in the sector.

They have applied their capability to grow into other highly regulated markets requiring high integrity stainless steel (or other exotic metal) fabrications.

GEL now provides advanced manufacturing solutions to clients across a broad-spectrum of industries including, nuclear, aerospace, security and medical industries.

GEL was founded in 1970 and has more than 180 employees.

GEL will remain as a standalone company but ably supported by A2E planning to crystalise significant growth in the organisation through targeted investment and leveraging streamlined/amortised production capabilities.

The value of the deal is undisclosed.

Tony Eckford, GEL chairman, said: “The completion of this acquisition by A2E Industries Ltd will provide long-term certainty and affords Graham Engineering the opportunity to strengthen and grow the capability and capacity of the company across a range of sectors, where significant growth opportunities exist.

"We’ve been really pleased with the support and advice provided by Chris and the team at Transcend.

"They’ve managed the process well with their partner led approach.

"Their experience working with owner managed businesses like GEL was evident throughout, while their responsiveness, attention to detail and sound strategic guidance have been crucial to the successful outcome.

"In addition, Chris’s nuclear industry credentials ensured we were able to identify the right buyer and to work through the sale process smoothly. I would have no hesitation in recommending them to others considering a sale of their business."

Led by its founder and owner Amin Amiri, A2E is an industrialist value investor, focusing on long term wealth creation, with an strong record of investment return on realisation events.

A2E seek to invest in mid-market industrial and manufacturing businesses, including those poised for substantial growth.

Amin Amiri, founder and CEO of A2E Industries, said: “We are delighted that whilst other suitors failed to complete a deal, A2e with our innovative and contrarian approach have successfully acquired GEL, an advanced engineering business.

"Our plans are to modernise or automate processes, information systems and to motivate key people with awards of equity to create goal convergence.

"Furthermore, we are also delighted that Adrian Smith will join the company as managing director, providing a wealth of capability and knowledge from his extensive time in related industries.”

All of GEL’s key customers have welcomed A2E’s acquisition of the business, recognising the benefits that A2E will bring to the strategy, leadership and operational capability of GEL.

Direct discussions with GEL’s major customer have been ongoing for some time to ensure there was strong overlap in their strategic vision for GEL. These discussions have been very positive and supportive.

The industrial products team at Birmingham and Thames Valley based Transcend Corporate, led by Chris Bill acted as lead advisers to the shareholders of Graham Engineering.

Chris Bill, said: “We are delighted to have been able to help the shareholders of GEL. The business is a strategic asset in the nuclear industry and interest in acquiring it was extremely high.

"In managing the sale process, we were able to identify A2E as an ideal future home for GEL. The discussions around future plans have been exciting to hear.

"As someone who is personally involved in the global nuclear industry, it is very pleasing for me to help an important business such as GEL find a new strategic home which will allow it to better fulfil its future potential.

"We have also been able to introduce a new highly respected and relevantly experienced CEO to a2e to enable them to start the development journey from day one."

GEL has developed a range of innovative manufacturing processes within comprehensive fabrication facilities, including laser profiling involving multi axis welding robotics, a variety of welding processes (including Robotics 3D Fibre Laser), five axis machining, large deep drawn pressing, forming, surface treatments (Vaqua Blasting), polishing, CMM inspection and final assembly.