A Wrexham-based coating business which works with companies in the aerospace, automotive and defence industries has been snapped up by the UK arm of a New York Stock Exchange-listed group. More than 30 parties were interested in purchasing KG Coating, including a number of international bids.
SPS Technologies, the UK subsidiary of Oregon-based Precision Castparts Corporation, has acquired KG Coating for £2.3m.
Founded in 1994, the business provides a coating service applying aluminium and polymer coatings for customers. It works with UK aircraft manufacturers and only has one competitor in the UK with an additional one in Germany.
Thirty parties were interested in purchasing the company through business sales brokerage KBS Corporate and five offers were received. Four overseas trade buyers from the US, Netherlands, India and France were among he potential acquirers.
SPS Technologies, which has its UK headquarters in Leicester, designs and manufacturers high performance and high strengthen fasteners. It was founded more than 100 years ago and has an £80m turnover.
Guy Haynes, senior deal executive at KBS Corporate, assisted on the deal.
He said: "Our client had previously purchased the business in 2013, and decided to investigate the option of selling after noticing improving market conditions within the aerospace industry."
KBS Corporate assisted in negotiations through to completion, while legal advice was provided by Stephen Jarman of Taylors Solicitors in Manchester. SPS Technologies was advised by Walker Morris of Leeds.