Fabricator is snapped up in North to South deal
ASOUTH Tyneside metal fabrication firm has been snapped by a Sussex business in a £1.8m deal Jarrow-based AAP has been acquired by Eastbourne company DINH Ltd in a move which will see its directors retire with immediate effect.
AAP, which is based on the Bede Industrial Estate, was established in 2009 and provides metal fabrication services for the subsea, offshore and renewables sectors.
New owners, Gordon Watt and Jeremy McLeod-MacKenzie at DINH, say the acquisition will provide a strong fit with another of their businesses, Washington Waterjet Ltd (WWJ).
Terry Hall, who is MD of WWJ, will also become the managing director of AAP, with the company’s current general manager taking charge of day-today operations.
Mr McLeod-MacKenzie said: “AAP has developed a strong reputation for supporting local clients with innovative solutions in a timely manner. This has resulted in the development of a loyal customer base that considers AAP a critical supplier. There is still huge potential to extend AAP’s geographical reach and continue its development and growth, with focus to date having been on their local marketplace.”
Two new jobs are set to be created over the next 12 months, with the new owners aiming to increase revenue.
South Yorkshire-based Finance For Enterprise (FFE) provided £250,000 of funding to DINH Ltd to support the acquisition, with the remainder coming from a combination of cash, invoice finance and deferred consideration.
The deal marks the first usage of FFE’s new £25m facility, recently announced as part of the £62m CIEF funding provided by Lloyds Bank and Big City Capital.
The deal was introduced to FFE by Pegasus Funding Solutions.
Neil Wade, senior business lending manager at FFE said: “We are delighted to have supported two entrepreneurs to complete the acquisition of their fourth engineering business.
“In doing so, the deal has helped to protect and create new jobs in an area that currently suffers higher than average levels of unemployment.”