Corporate Finance

FRP secures ideal buyer for TEK4

Corporate Finance team identify investor for high-tech engineering company

Milling machine

Background

Based in Leicester, TEK4 is a world-leading manufacturer of specialist drilling machines used in the production and maintenance of turbine blades for jet engines and power generation, designing and manufacturing world-leading technology supplied to blue-chip customers globally. Having established the company 20 years ago, the shareholders were looking to start the transition to retirement and bring new investment into the company to support its next 20 years of development. They approached FRP with a clear brief: to identify a long-term owner for the business (not a competitor), ensure the management team had the opportunity to earn equity, and enable the founder to take a phased step back from leading the business while continuing to provide support to the company.

Action

FRP’s Corporate Finance team was engaged to market the business for sale, and identified a select group of suitable financial investors with the right long-term outlook. Using our first-hand experience of working with non-mainstream investors, we were able to take a collaborative approach to engaging with the potential buyers. An appropriate deal structure and certain qualitative provisions were put to the audience, to ensure that all the aspirations of the clients were met.

Outcome

Having received interest from the majority of the investors approached, the founders of TEK4 selected Robin Womersley as their preferred investor, who was able to meet or exceed every aspect of the deal parameters that the FRP team set out. The result is that TEK4 will move forwards with new investment, an engaged and incentivised management team, and the benefit of ongoing support and input from the founder to help the business continue to grow and flourish as an advanced British manufacturer of high-tech machinery.

It was very satisfying to be able to meet or exceed every requirement from our client’s highly tailored brief on the project and, most importantly, we look forward to seeing TEK4 continue to thrive and grow as a high-tech manufacturer based here in the East Midlands. Harry Walker Corporate Finance

Related team

Harry Walker

Harry Walker

  • Partner
  • Corporate Finance
  • Leicester

Daniel Choucino

Daniel Choucino

  • Manager
  • Corporate Finance
  • Leicester

Michelle Bryan

Michelle Bryan

  • Senior Tax Manager
  • Corporate Finance
  • Cambridge, Norwich