Member Article

Reece Group acquire for oil and gas move

North east engineering company Reece Group have acquired the Responsive Engineering Group, in a move to enter the oil and gas markets.

Reece comprises Pearson Engineering and Pearson Engineering Services based in Newcastle, and Velocity UK, based in Sunderland.

The acquisition of Responsive Engineering means the firm will grow its offering to include machining, welding/fabrication, pressing, assembly, testing and laser and waterjet cutting.

It currently employs 180 staff across three sites on in Gateshead, and generates a turnover of roughly £15m. Reece Group employs around 450 people, and last year generated turnover of around £211m.

Chairman John Reece said: “We are delighted to announce the acquisition of Responsive Engineering Group. As well as providing us with access to the oil and gas market, its fabrication service compliments that provided by one of our existing businesses, Pearson Engineering Services, which produces larger fabrications for both the defence and subsea markets. We are looking forward to working with the Responsive management team to continue to build on the high quality work and sales growth they have achieved.”

Phil Kite, Reece Group director responsible for acquisitions, stated: “This deal is good news for both businesses. Each has been successful in their own markets. The Reece Group brings an ethos of investing in the design and development of new products and services and has considerable experience in developing export sales.

“Responsive Engineering has heavily invested in the latest technology and is regarded as one of the north east’s leading subcontract manufacturing businesses.

“This opportunity came at the right time for both businesses – the Reece Group looking to enter new markets and Responsive Engineering looking to expand and secure the financial backing to do so. I believe together the businesses will make a formidable team.”

Responsive Engineering Group managing director, Peter Bernard, who will remain with the business, added: “I am delighted with the acquisition of the Company by the Reece Group. I launched Responsive Engineering in 2000 and together with Paul Torday, undertook a management buyout in 2005.

“Since then we have successfully followed a strategy to grow the business. The Reece Group is highly regarded in the region as a strong business with an excellent engineering pedigree. The Group is both ambitious and committed to the growth of engineering in the north east. All of which is good news for Responsive Engineering, as we will continue to develop and grow our enterprise as part of that commitment.

“This is an excellent fit for both parties and there are many upsides for everyone. I am particularly pleased that our management team will remain in place and that there is security and a very bright future for all our employees under the new ownership.”

The Reece Group corporate advisors were UNW, led by Paul Kaiser. Legal advisors were Dickinson Dees, led by Iain Pritty. Responsive Engineering Group’s corporate advisors were PWC, led by Paul Mankin. Legal advisors were Ward Hardaway, led by Martin Hull.

This was posted in Bdaily's Members' News section by Tom Keighley .