North East team drives GT reboot

A North East manufacturing business has entered a new chapter after being brought back into regional ownership through a management buy-out.

GT Group, the Peterlee-based supplier of engine air and emissions control systems, has been acquired from private equity firm Rcapital by its existing leadership team, supported by funding from Cynergy Bank. 

The move returns the company to local hands for the first time since 2016 and marks a significant milestone for one of the region’s best-known engineering brands.

The deal sees managing director Steve Wright, finance director Ian Black, HR director Kelly Kean and commercial and technical sales director Dean Machnicki take full control of the business. 

Under its new ownership, the leadership team say they plan to accelerate growth by capitalising on global demand for technologies that help manufacturers meet tightening emissions regulations across on-highway and off-highway sectors.

Steve said: “This is an exciting moment for everyone at GT Group, where we are returning the business to North East ownership and personally taking on the legacy of the company’s well-respected founder, Geoff Turnbull, being, entrepreneurial spirit, agility and support of the local community, that have always been part of the company’s DNA.

“Further, we have a highly experienced and motivated team, world-class products and deep relationships with global OEM’s, and as the global industry evolves towards new emissions standards, we are exceptionally well placed to help manufacturers meet these challenges through innovation, engineering excellence and responsive customer support.”

Founded in the 1970s, GT Group has grown into a major supplier to global OEMs including Daimler, Volvo, Scania, JCB and John Deere, employing more than 180 people at its Peterlee site and operating additional manufacturing capability in India.

Advisers from RG Corporate Finance supported the buy-out team, with partner and head of corporate finance Carl Swansbury working alongside CF partner Nick Johnson, senior manager Sam Shield and managers Benjamin Kain and Euan Mulholland. 

Legal guidance for the management team came from Mincoffs Solicitors, where partner Christopher Hughes was joined by associate solicitor Max Gilchrist and trainee solicitor Jenny Luke.

Carl added: “GT Group is a long standing, standout North East manufacturer with a global reputation and a long history of innovation, technical excellence and strong leadership. 

“The management team acquiring the business has the capability, vision and commitment required to take GT Group into its next phase of growth.

“Returning the company to North East ownership is a hugely positive milestone, not only for the business itself but for the wider region. 

“It reinforces the depth of engineering talent that exists in the North East and the crucial role regional manufacturers continue to play in helping the commercial vehicle industry achieve lower emissions.”

Rcapital received support from Browne Jacobson, with partner James Skivington, partner Gavin Cummings, senior associate Rob Northall and associate solicitor Daniel Knowles advising on the transaction. 

Cynergy Bank received legal advice from Shoosmiths.

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