Sale of Kewtube
Hilton Smythe is delighted to announce the sale of Kewtube, a market-leading CNC tube fabricator, to the multi-million pound industrial supplies and engineering enterprise, James Lister & Sons.
Based in West London, Kewtube has carved out a considerable niche in the CNC tube manipulation industry over its 60+ years of operation, offering an end-to-end fabrication, coiling and finishing service. With an independent management team, extensive plant list, and a diversified client base, the company presented a highly promising acquisition prospect for companies in the same or adjacent sectors.
Approached by the major shareholder John Ramsell in April 2022, Hilton Smythe began preparing information to support the sale of the business, including a detailed valuation and the production of an impactful Information Memorandum. Our research team then produced a list of potential buyers, running a full research and marketing process.
A synergistic fit for James Lister & Sons
James Lister & Sons, founded in 1874 in Tipton by a local schoolteacher, is one of the largest independent engineering service and supply companies in the UK.
In recent years, it has targeted growth across its various divisions – listerfluidpower, listersupplies, listertube, and listersubcontract – setting itself the goal of £17m in turnover in 2020. More recently, in 2023, they worked towards their 3-year strategy of doubling turnover for the listertube division and expanding their CNC bending capabilities by acquiring a new Unison Breeze 76 multi-stack machine.
Our research team identified Lister as a perfect strategic fit for Kewtube, introducing the companies in November 2022. Their existing listertube division combined with Kewtube’s expertise, assets and established client base promised to solidify James Lister & Sons’ position as a leader in the CNC tube manipulation industry.
Dr Peter Davies, CEO of James Lister & Sons, says: “Kewtube was the ideal acquisition target for us as it was a direct add-on to our existing tube manipulation business.
“It fits with our growth strategy of expanding our presence in the UK tube manipulation market that we entered just over ten years ago and where we have already organically grown our presence through our fast, friendly and reliable service to become one of the leading players.”
The deal completed in April 2024, securing a competitive asking price.
A sale overseen by Hilton Smythe Deal Executive Aidan Murphy
Deal Executive Aidan Murphy, who has over a decade of experience in SME dealmaking, helped to steer the deal to completion. He managed all enquiries, ensured confidentiality through non-disclosure agreements (NDAs), encouraged competition among interested parties, and secured favourable terms in the letters of intent. Additionally, he oversaw the due diligence process and remained a consistent point of contact for both parties.
John Ramsell commented: “Hilton Smythe offered a very professional service; they were very patient throughout a process that took 13-15 months.”
Dr Davies echoed this sentiment: “We had the same single contact at Hilton Smythe throughout our acquisition, which contributed to an efficient process. Aidan was very helpful and prompt at dealing with any queries and gaining responses from the vendor during the initial stages.
“Once we had agreed a deal in principle and were in direct contact with the vendor, he stepped aside so that we could progress the deal most effectively. However, he contacted me regularly to ensure that everything was still on track or if we needed any additional support.”
This successful acquisition adds to Hilton Smythe’s impressive track record in the manufacturing sector for FY 2023-24. Previous successful transactions include the sales of Steam Traction World, Playground Imagineering, and Nipro, a prominent player in the electroplating and galvanising market.
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.
Discover how we can help you achieve your goals
Make a confidential enquiry
