Shawbrook supports MBO of Rotamic Engineering Ltd as former trainee turns owner
Former trainee and current MD, Gary Squires has become a majority shareholder of Rotamic Engineering Ltd following a Management Buyout (MBO) supported by Shawbrook.
Based in Exeter, Rotamic Engineering Ltd is a specialist engineering company, which manufactures a diverse range of components for high technology sectors including aerospace, medical, and scientific applications. The company supports these sectors by the specialist use of multi-axis machinery, inspection equipment and software processes. During the Covid pandemic, Rotamic pivoted and became a key supplier in the ventilator and Covid testing programmes.
A significant employer in the region with links to local colleges to support its long-standing apprenticeship scheme, the average tenure of employees is an impressive nine years.
Gary Squires has been MD for the last five years, having started at Rotamic as a trainee 27 years ago. The MBO will see Gary taking a 95% stake in the business, with the remaining held by senior management. As part of the MBO, a succession strategy has been put in place for the exiting shareholder.
Shawbrook is providing a seven-figure commercial loan with a five-year term to support the buyout.
Having worked at Rotamic since I left school, it was incredibly important for me to ensure the longevity of the business and our staff going forward.
Gary added:
“I’m thankful to former own, Mark Curtis for his stewardship during his tenure and wish him all the best moving forwards. Shawbrook has been pivotal to the success of the MBO, and the team’s expertise, clear communication and ability to offer flexible and bespoke finance stood out.”
Oliver Jenkins, Director at Shawbrook comments:
“We were very impressed both with Gary’s leadership and that of the entire senior management team at Rotamic. Supporting businesses onto their next stage, whatever that is, is our bread and butter, and I’m proud that we have been able to support this local, and highly specialised business. Our thanks in addition to Matt at PKF Francis Clark who played an instrumental role in getting this deal across the line.”
Matt Willmott, Corporate Finance Director at PKF Francis Clark said:
“It’s been a real pleasure to work with Gary over the past year and to advise on the entire management buyout process, including undertaking an MBO feasibility study, deal structuring, tax advice and tax clearances, negotiations and raising finance for the deal. I’m delighted that we could get the deal over the line, with funding provided by Oliver and the team at Shawbrook.
“Gary has been instrumental in the success of Rotamic for many years and completing the MBO is recognition of that. We look forward to seeing the business grow from strength to strength.”
Matt Willmott at PKF Francis Clark acted as adviser on the deal for Rotamic, with Clark Wilmott LLIP providing legal counsel to the Rotamic team. Suzanne Love at Shoosmiths acted for Shawbrook.
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