In November 2023, Hilton Smythe secured the lucrative business sale of Nipro, a prominent UK nickel plater, to UK Metal Finishing, a leading player in the electroplating and galvanizing market.
Nipro’s owner, David Bennett, took over the reins of the business in 1996, winning a number of prestigious contracts for the organisation’s electroless nickel coating and diffused nickel plating services. David had led the business to stablishing a formidable presence in the engineering, energy, and aerospace and defence industries.
Looking to take a well-deserved retirement, he approached us to explore his exit options.
Hilton Smythe identified UK Metal Finishing as a geographically- and strategically-aligned buyer
Recognising Nipro’s scalability and potential to become the UK’s leading nickel plater with appropriate investment and development, our research team identified a geographically- and strategically-aligned buyer to ensure the company’s continued success – UK Metal Finishing Ltd.
UK Metal Finishing is a prominent player in the UK’s electroplating and galvanizing market, specialising in zinc plating. Acquiring Nipro’s expertise in nickel plating presented a strategic opportunity for diversification, opening doors to industries where nickel’s superior corrosion resistance is essential – particularly for demanding applications like subsea components in the oil industry.
The deal completed in record time, closing within a year of initiating marketing and buyer outreach.
Worsley-based Nipro now joins UK Metal Finishing’s network of facilities across Manchester and Yorkshire, and is poised for continued success and growth.
The process
We managed the entire transaction, from initial onboarding with the preparation of valuations and marketing documentation, through to buyer research and deal negotiation.
Deal Executive Katie Holt oversaw the entire sale process, handling enquiries, controlling information access with NDAs, creating competitive tension where appropriate, and negotiating letters of intent and favourable deal terms. She also oversaw the entire due diligence process and data rooms, advising on contractual negotiations and managing the legal process through to closing.
The outgoing shareholder, David Bennett, said: “Everyone at Hilton Smythe were excellent – and special thanks to Katie [Holt] for everything she did. From day one to the end, she was excellent – I can’t thank Katie enough.”
Is now the right time to exit my manufacturing venture?
Deal activity in the industrial manufacturing sector is expected to increase in 2024, as inflation and higher interest rates begin to ease. Many industry watchers are also expecting an uptick in manufacturing M&A to be fueled by more flexible dealmaking, with a trend towards alternative financing and structuring approaches, such as earnouts and joint ventures.
Larger players are also expected to focus on smaller mid-market acquisitions rather than horizontal mergers in light of high valuations amongst enterprises and enduring financing challenges.
Technological advancements, such as increased automation, and industry consolidation (with a focus on diversification) are also expected to drive increased M&A activity in the sector.
At Hilton Smythe, we have experience across varied manufacturing sub-sectors, and have a proven track record in facilitating successful exits for companies as wide-ranging as the niche machined kits manufacturer Steam Traction World and playground equipment manufacturer Playground Imagineering through to firms with cross-industry presences such as Nipro.
Our aim is to maximise shareholder value by managing the entire transaction lifecycle – from exit planning and sell-side due diligence through to marketing, buyer research, deal structuring and negotiation.
If you’re thinking about exiting your manufacturing venture, contact Hilton Smythe today for a free consultation and discover how we can help you achieve your goals.
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