Our growth experts recently advised the shareholders of one of Birmingham’s oldest manufacturers, Brandauer, in an acquisition by the management team that secures UK ownership and sets out a ten-year plan for growth.
Brandauer is one of the leading precision engineering providers in Europe, manufacturing metal components for customers around the world. It has built a reputation for engineering excellence, investing in the future of UK manufacturing and applying a precise approach to developing strategic relationships with clients across fifteen different sectors.
On White & Black’s role in the deal, Brandauer Board Chairman, Sir John Crabtree – said: White & Black provided valuable, strategic advice to our shareholders throughout this transaction. Their commitment to fully understanding the concerns and objectives of all parties resulted in advice that was not only commercially astute but refreshingly free of legalese.
White & Black’s team lead John Allen said: Working with the Brandauer team on this transaction was a real pleasure. We’re delighted to have acted for the principal sellers, and the successful MBO begins an exciting new chapter for everyone involved (and, crucially, furthers the company’s rich heritage). We’re delighted that Brandauer’s ‘homegrown’ talent will be leading the charge and taking the company’s expertise into new countries and markets.
About the Deal
Current CEO Rowan Crozier, Manufacturing Director Stuart Berry and Non-Exec Director David Chapman have joined forces to buy the company, with the trio immediately laying out a ten-year plan that will see it initially build annual sales to £12m by 2029.
Financed by HSBC, the deal will ensure the company remains in UK ownership and in a perfect position to explore opportunities associated with its complex tooling, stamping, R&D and growing its newly founded consultancy service.
More than 20 new jobs could be added to Brandauer’s existing 64-strong team when the vision is realised, a vision that will see it provide sustainable and smart manufacturing solutions that shape the future of healthcare, connectivity, mobility and innovation.
Rowan Crozier MBE said: “We believe we have created something special here, exporting precision parts and tools to more than 26 different countries from our base in Birmingham.”
“When the family shareholders made the difficult decision to sell, there was lots of interest from overseas, some of our customers and private equity, but deep down we knew that could mean changes to the fabric of the business. With this in mind, the management team decided we’d take matters into our own hands by leading an MBO.”
“Importantly, all directors are in this for the long-term. We have carefully crafted a ten-year business plan that leverages our history and proven track record with a desire to move into new markets, including power storage, aerospace and defence. There’ll also be a continued push to invest in automation to further increase our productivity.”
A New Chapter
Brandauer’s history dates back to the 1780s when Jean Petit, a French Huguenot refugee, fled to England to escape religious persecution, setting up a metalworking business in Birmingham.
His grandson Joseph Petit followed in his industrial footsteps, gaining his apprenticeship at one of the largest pen nib manufacturers in the world before forming his own company Ash, Petit & Co in the 1850s.
A few years later, Carl Brandauer took over the company and the Brandauer name became a part of local culture, with Joseph remaining to run the business.
Innovation has been a big part of Brandauer’s DNA throughout its 163 years of operation, and the Petit family – now in its sixth generation – still made up the majority of the 42 shareholders who sold the business.
Future Plans
Over £5m has been invested by Brandauer in creating a world class precision engineering facility in Birmingham, with a further £1.4m earmarked for a new automation project in September and expansion of the company’s precision machining capabilities over the next three years.
There will also be a major focus on the company’s rapid prototyping service, which involves a combination of advanced laser cutting, ‘tool-less’ precision metal forming and stamping to take a design from a simple 2D drawing into a fully formed 3D component in as little as 48 hours.
Stuart Berry, who started as an apprentice at Brandauer more than 20 years ago, continued: “There is a real momentum behind the company and the MBO will accelerate this, giving us even more freedom to take our manufacturing expertise into new countries and new markets.
“Importantly, we are massive advocates of growing our own staff and apprentices, with nearly 25% of the workforce coming through this route. The MBO futureproofs the company for them, and the hope is that one of the next generation of the team will eventually take over from us.”
