Dundee-based GA Engineering has been involved in a major expansion, its holding company taking over a Tyne & Wear engineering concern for a seven-figure sum.
Glass Acquisition, which owns 60% of the West Pitkerro precision engineers, has bought the total shareholdings of MKW Engineering, Stargate Precision Engineering and Total Maintenance & Engineering.
The takeover makes GA part of a significantly larger manufacturing group. Bank of Scotland provided loan funding for the deal, with further support from Simmons Private Equity.
Gordon Deuchars, founder of GA, said the acquisition fulfils a key step in the creation of a wider manufacturing operation, offering GA’s clients additional capabilities, services and products to create an integrated proposition.
GA has plans to grow from a £13 million to a £30m business in four years. Its aim was to double in size and “take it to the next level” to achieve a total workforce of more than 200.
GA has a turnover of £13.7m, a workforce of 150 and operates in the oil and gas, electronics, telecoms, aerospace, medical and automotive sectors.
MKW has a turnover of £7.4m and works in renewables, industrial and defence as well as oil and gas.
Gavin Aitken, group chief executive, said: “Through the combination of GA and MKW expertise and service lines, we’re able to diversify and strengthen the market proposition and create a strong platform for further growth.”
Martin Moran, relationship director at Bank of Scotland, said: “GA’s high quality machining ability plus MKW’s design capability, fabrication skills and project management will enable the enlarged group to provide a one-stop, turnkey service to clients.
“We are delighted to have been given the opportunity to support our clients’ expansion plans.”