Black Country professionals have helped a Rowley Regis engineering firm take the first steps on the acquisition path to growth.
Leading Midlands law firm Higgs & Sons and national audit, tax and advisory firm Crowe Clark Whitehill advised Cube Precision Engineering on its purchase of the precision engineering and tool manufacturer GFP Tools Ltd in Dudley.
Cube, founded by Neil Clifton and Phillip Bannister in January 2009, specialises in the design and development of production tooling for clients across the UK.
Managing directors Neil Clifton and Phillip Bannister have been focused on their growth plans for the business and the acquisition of GFP is seen as the first in a series of similar deals which will see them realise their plans for a sustained period of strategic growth over the next three years.
Neil Clifton said: Since we started Cube in 2009, demand for British-made products from around the world has increased.
We have invested in machinery and staff to meet that demand. It was always our plan to grow through acquisition and we have held GFP Tools in high regard as one of our sub-contractors for several years. They share the same approach to business.
In addition to the acquisition, specialist advisers from Higgs award winning corporate team also assisted with the corporate reorganisation of the Cube Group to provide the platform for future acquisitions.
Richard Griffiths, corporate partner who led the Higgs & Sons team, said: We were delighted to be instructed by Cube to assist with the acquisition of GFP and we are looking forward to working alongside them as they implement their ambitious plans for the Cube Group.
Cube is a real local manufacturing success story and I am confident that the business will continue to go from strength to strength.
Andy Kay, corporate finance partner at Crowe Clark Whitehill, who advised on the deal, said: Cube is an engineering business that is growing and looking to enhance capacity.
The acquisition of one of their suppliers who they know and respect was the first step in this process.
This is a very good strategic move which brings further capacity in-house and hopefully will lead to more acquisitions before long.
The deal was funded by a Lloyds Bank team led by Mark Meakin, relationship director for Midlands manufacturing clients.
Pictured: (l-r)Phillip Bannister (Cube), Andy Kay (CCW), Richard Griffiths (Higgs & Sons ), Neil Clifton (Cube), Philip Beese (GFP Tools).