GIL Investments Limited (“GIL Investments”) announces that it has led the acquisition of the trade and assets of the Coatbridge, Scotland, based precision machining business of Proserv UK Limited (“Proserv UK”) formerly known as KRG Industries Limited. The new company will be called KRG Specialist Engineering Services Limited (“KRG”) and is a provider of precision machining services to companies operating in the Oil & Gas, Aerospace & Defence, Rail and Food sectors.
GIL Investments is a UK headquartered private investment firm which invests in a range of sectors but has a particular specialism in manufacturing and industrials businesses. GIL Investments’ portfolio now comprises fourteen companies with combined turnover in excess of £400m.
The existing management team of KRG will continue to lead the business with Gerry Hughes to be appointed Managing Director. Gerry has led the business under Proserv UK’s ownership and has worked for the business for in excess of thirty years.
Gerry Hughes, Managing Director of KRG said “We are very pleased to be able to announce this transaction today which I believe will provide great opportunity for our customers, our suppliers and our staff. We thank Proserv for their support and we are very excited by the opportunity to work with GIL Investments on the next phase of our growth”.
Davis Larssen, Chief Strategy Officer of Proserv said “The Coatbridge business was acquired at a time when Proserv was invested in developing an alternative subsea tree proposition to the market, however following the industry downturn in 2015, the development plan was reviewed and changed with this sale representing the final part of our exit from this area of the oil and gas market, enabling Proserv to focus exclusively on its core controls technology. The core attributes of the Coatbridge business remain exceptionally strong and it was recognised that the business is set up to achieve its ambitions under new ownership. I am pleased that the existing management team led by Gerry Hughes will remain with the business and take it forward.”
Les Litwinowicz, CEO of GIL Investments said “KRG has a forty year track record of working with its customers to deliver technologically demanding solutions to their problems. We very much look forward to working with Gerry and his team to grow KRG, both in its core market and in other sectors.”
Bank funding was provided by Independent Growth Finance (“IGF”). GIL Investments were advised by Shoosmiths LLP (Legal), Business Strategy Group (Commercial) and Mazars LLP (Tax). IGF were advised by Pinsent Masons LLP (Legal). Proserv UK was advised by Simmons Energy (Corporate Finance) and Blackwood Partners (Legal).
The terms of the transaction have not been disclosed.