Sheffield University castings company managers stage ambitious buy out
Managers at a Sheffield University castings company have bought it and raised a further £2m for growth under ambitious plans to go it alone.
Managing director Richard Cook and local entrepreneur Kevin Parkin, the new chairman, led the management buyout at Castings Technology International Ltd.
The 60-strong firm on the Advanced Manufacturing Park in Rotherham claims to be a world-leader in metal casting for customers in aerospace and transport. Its titanium caster is one of the largest in world, with a capacity of 1.2 tonnes.
The £2m funding is for product development, sales and marketing.
Mr Cook said: “We are delighted to have the opportunity to take forward our plans for the company under our new ownership. The management team would like to place on record its sincere thanks to the University of Sheffield for its support and assistance during the transferral of the ownership of the company and its support for CTI over a number of years.
“The management team understand this business and are dedicated to serving our customers and working with our fantastic team of experienced engineers.”
Kevin Parkin said: “This is a unique opportunity to develop and grow this highly efficient manufacturing capability now that the equipment, processes and quality systems have been fully developed and accredited.
“Working alongside our AMRC neighbours, together with the superb research and development initiatives provided by the university, will give CTI an enviable position in the global supply chain.
“The facility will also allow the City Region to attract and retain metallurgical talent.”
A spokesperson for the University of Sheffield said: “We are delighted that this transaction will see the continuation of CTI’s operations under new ownership, securing the employment of 60 people in highly skilled jobs.
“Progressing to private ownership is a natural and welcome evolution, and the university has worked with the CTI management team to ensure as smooth a transition as possible.”
Castle Square Corporate Finance, led by managing director Kevan Shaw and director Steve Bell, provided advice on the transaction and ran the fundraising process. The CTI team borrowed £2m from Mercia Asset Management, via the Northern Powerhouse Investment Fund and Nucleus Commercial Finance.
Legal advice was provided to the management team by Sheffield lawyers, Wake Smith, led by John Baddeley, with Mark Cooper of accountancy firm BHP providing tax advice.