A tooling firm has been brought back into the family firm in the latest business deal arranged by law firm Keelys.
Aldridge-based Formrite Precision, which specialises in precision tooling for the aerospace industries, has undergone a management buy out and has been acquired by an employee who joined the company straight from school.
Geoff Neale bought the company, which employs 30 people and has a turnover of £2 million for an undisclosed amount.
The acquisition also means that the firm has been brought back into the family, as Mr Neale’s stepfather was a former part-owner of the original company, Formrite Tool & Gauge Co Ltd – formed in 1959.
Corporate partners Hitesh Punjani and John Primmer, of Keelys in Lichfield, acted for Mr Neale who acquired the entire issued share capital of the company through a new vehicle, G&M Holding. The seller was Wolverhampton-based international engineering specialists TRAC Group Limited, who provide design and manufacturing services across a number of industries including aerospace, defence, medical, pharmaceutical, power generation, automotive and packaging.
The transaction was completed in just two weeks by Keelys’ corporate team. Mr Punjani said: “We were delighted to act for Geoff and help him purchase a company which has been such a key part of his life from an early age. This is a thriving business which lists names such as Rolls Royce among is customers. We wish Geoff and his team every success in what can once again be described as a family firm.”
Formrite Precision is based at Westgate, Aldridge. In addition to manufacturing precision tooling the company also specialises in the design and manufacture of special purpose machine tools, test rigs and mechanical handling solutions for primarily the aerospace and automotive sector.
Keelys has dealt with a number of management deals at smaller firms in recent months. Last month, the firm acted for the retiring shareholders of Birmingham research firm Total Research in their disposal of shares to the management team.
Mr Punjani worked with directors and shareholders Audrey and Michael Heath in the selling of the shares, as well as previous MBO deals for Keelys, when the firm completed a management buyout for Tamworth-based engineers Aspire Consulting (Holdings).
He acted for the MBO team which included managing director Peter Stuttard, operations director Steve Sims and Terence Leaphard, Aspire’s personnel and quality manager. The trio purchased the company from vendors Colin Francis Butt and Brian Lamb for an undisclosed amount.
In another recent deal, Keelys acted for Rushcliffe Care – one of the Midlands’ largest operators of nursing and adult care homes – helping it to buy Nottingham-based Mappleton House Care Homes, which specialises in looking after adults with severe learning disabilities.