(L- R): Darren Turner, Nick Dean, Dave Brindle (Pexion), Sameer Rizvi and Iryna Dubylovska (RDCP).

London investment firm hits £500m milestone via Lancashire based acquisition

London based investment firm RDCP Group has acquired one of the UK’s largest precision engineering groups, Pexion Group, at a £34m valuation. The deal gives RDCP a 75 per cent stake in this £55m turnover and £7m EBITDA business.

RDCP is also providing Pexion with a £15m acquisition facility to support bolt-on acquisitions and grow EBITDA to over £20m within five years. The transaction was brought to market by Interpath Advisory and incumbent lender HSBC continues to support the business.

Established in 1986 and headquartered in Chorley, Lancashire, the Pexion Group is a diversified group of high value precision and electronic engineering businesses. It has grown successfully and executed a buy-and-build strategy with HSBC.

The business operates with 16 subsidiaries, offering a “one stop” engineering solution to some of the world’s biggest original equipment manufacturers and tiered supply chain providers.

Services include design, development, prototyping, medium to high volume production with fully integrated supply chain solutions. Clients operate across the aerospace, defence, oil and gas, precision automotive, power generation and medical industries.

Dave Brindle (CEO) and Darren Turner (CCO) will continue to lead the business as management and shareholders. Both will work closely with RDCP founders, Sameer Rizvi and Iryna Dubylovska. The acquisition of Pexion Group increases RDCP’s assets under management to $600m (approx. £502m), with 2,800 staff members in the UK.

Sameer Rizvi, founder & CEO of RDCP Group, explained: “Pexion is an important acquisition for RDCP Group as it gives us immediate and deep access to UK’s precision engineering and precision manufacturing sectors, which typically have high barriers to entry.

“In addition, we have competed with Pexion a few times on potential acquisitions, where Pexion ultimately won the deal. Hence, I could not be more pleased to now join forces with Dave and Darren and continue this buy-and-build journey together to grow Pexion’s valuation to over £200m within the next five years.”

Dave Brindle, CEO of Pexion, added: “The deal represents a significant milestone for the Pexion Group and will enable us to continue our growth trajectory and better serve our loyal and expanding customer base.

“The Pexion Group has a fantastic foundation, through its world class competences supported by a dedicated and committed workforce. We look forward to the challenge of delivering the next phase of our evolution.”

By Matthew Neville – Correspondent, Bdaily