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28/05/2019

Midlands-based Precision Technologies repays £1.2million investment

28/05/2019

Midlands-based Precision Technologies repays £1.2million investment

Precision Technologies, a specialist manufacturer of precision splines, threads and gauges, have repaid a £1.2million investment from the Regional Mezzanine fund, marking a successful exit three and a half years after backing the management team to develop and grow the business.

Precision Technologies has over 50 years’ experience in the manufacture of specialist precision parts and is a major supplier to award winning Formula 1 teams, as well as supplying a range of sectors including medical, oil and gas, and aerospace.  

The investment was part of a £4.0m funding package provided in December 2015 to enable the company to be acquired by its management team, alongside the purchase of new capital equipment and recruitment of additional highly skilled people into the business.

In January 2019 in recognition of their achievements to date it was awarded Business of the Year by the Motorsport Industry Association (MIA).

James Nicklin, Managing Director of Precision Technologies, said: 

“The investment in 2015 from the Regional Mezzanine Fund enabled us to retain a high level of engineering expertise in our growing team, whilst continuing to work with customers globally to manufacture and supply cutting edge components. 

Throughout the investment we were supported by an engaged and proactive relationship with FDC, and we’re pleased to have been able to work together to develop the business to this stage.”

Clive Broadhurst, Portfolio Director of Frontier Development Capital, said:  

“We recognised at the time of our investment that Precision Technologies had an excellent reputation for producing high value components, led by a highly skilled management team. 

Precision Technologies is a prime example of the type of business that can benefit from flexible investment. We’re delighted to have supported them during this phase of growth over the last three and a half years, and they will no doubt see continued success in the future.” 

For more information on funding for Growth Capital, including management buyouts, read more about our Regional Debt Fund here