Member Article

Innovative North West manufacturing group sold in private equity deal

Manchester-based advanced materials manufacturer Diamorph has confirmed its acquisition by private equity house Epiris.

Diamorph is a manufacturer of highly-engineered components for specialist sectors including rail, marine, ceramic rollers, fire protection and high temperature process industries.

The Group has more than 300 staff spanning manufacturing sites in Trafford Park and the Czech Republic, and a customer base exceeding 2,000 businesses across 65 countries.

The deal sees London PE house Epiris back the existing management team to drive further growth and help the business broaden its product range. The funding package was delivered by a four-bank club, led by Lloyds Bank Commercial Banking.

Initially founded in 2003 as the commercial arm of the materials research facility at Stockholm University, Diamorph has since expanded rapidly – acquiring two other businesses and growing to become a global industry leader.

In 2012 the Group acquired Tenmat, a 100-year-old Manchester-based engineered materials manufacturer, with Tenmat’s Gordon MacLeman and Mark Hutchinson stepping up to become CEO and CFO of the wider business respectively.

Diamorph has since been headquartered at Tenmat’s facility in Trafford Park.

The previous largest shareholders were Swedish investment firms Serendipity Ixora and Investment AB Latour.

Charles Elkington, partner at Epiris, said: “Diamorph’s highly diversified global customer base, coupled with its leading position in multiple niche markets, has created an exceptional business with an outstanding platform for further growth.

“Working with Gordon, Mark and the existing management team, we have every confidence that the Group will reach even greater heights as we build on its genuinely world-leading capabilities.

“Lloyds Bank’s tailored funding has enabled us to realise our ambition of backing this world-class business, and we look forward to their continued support in future.”

Ben Clarke, Relationship Manager (Mid Corporate) working with Adrian Peckham (Debt Finance) at Lloyds Bank Commercial Banking, said: “Diamorph is a fantastic example of a North West business leading the way in terms of technical excellence on the international stage, and this deal marks the beginning of a new growth phase for the business.

“We’re proud to provide the tailored funding that firms like Diamorph need as part of our plan to Help Britain Prosper, which is why we’ve pledged to provide £18billion to businesses in the UK this year.”

This was posted in Bdaily's Members' News section by James Stewart .