Seven-figure MBO creates new engineering business for the North East

A new advanced engineering business has been established in the region following a seven-figure MBO of a multinational organisation’s UK division.

Led by Michael Baker and Paul Seccombe, a pair of experienced engineers from the region, they have acquired the Power Generation and Aerospace Solutions (PGAS) division to establish GadCap Technical Solutions Ltd.

As part of the MBO, Michael and Paul have taken on the PGAS division premises in Washington, where it designs and manufactures market-leading bespoke engineered products for the power generation and aerospace industries.

The PGAS division is the only business in the world providing a steel-based, mineral product utilised in Advanced Gas Cooled Nuclear Power Stations with long-standing contracts to manufacture the solution for the UK industry.

Alastair Brown, CEO of Shard Credit Partners, said: “We are delighted to have been selected as financing partner to back this high quality MBO.

“This will be our first investment in the North East, and we look forward to working with RG to help the MBO team execute their organic growth strategy over the coming years.”

GadCap through its CapaciSense product line is also a market leader in the design and production of bespoke sensors, which are used in the measurement of operational gas-powered turbines to increase efficiency and safety.

Having worked in the division since 2002 and as the incumbent management team, the new directors will apply their experience and expertise to deliver a programme of organic growth.

To support the MBO, the directors appointed RG Corporate Finance, which in addition to advising on the purchase of the division also assisted with securing funding for the deal that has been provided by London-based Shard Credit Partners.

Michael Baker added: “Paul and I are very proud to establish GadCap Technical Solutions Ltd, building on the solid foundations of the previous organisation.

“We have created a strong niche in key markets through the creation of innovative engineered-solutions, which we have ambitions to expand in our existing markets and new geographies.”

Duncan Reid, head of corporate at Watson Burton LLP, concluded: “It was a pleasure to work alongside Michael and Paul throughout the MBO process.

“Their confidence in the business and their determination to grow a specialist engineering business in the North East will bring huge benefits to the region.”

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