Capital injection to fuel growth at specialist precision engineering business

Leading private investor, Rcapital, has acquired Nasmyth Group, provider of specialist precision engineering services to the aerospace, defence and related industries, in a transaction that sees Rcapital become a significant shareholder alongside the existing management team.

This Midlands-headquartered business with international operations in the US, Philippines and India achieved sales of over £80m pre-COVID but was negatively impacted by the dramatic drop in demand for passenger air transport during the pandemic.

Following a competitive and complex transaction process, Rcapital secured an additional £20m of new long-term debt facilities provided by Secure Trust Bank, as part of the deal.

The long-term trends in air travel globally remain strong, and this investment will enable Nasmyth to take full advantage of opportunities within the market as aviation volumes return. Working alongside Peter Smith, Simon Beech and Stuart Fyfe as CEO, COO and CFO respectively, Rcapital will remain actively involved to support management, provide stability and act as a catalyst for growth.

“We have worked closely with the Nasmyth Group management team and Rcapital to understand the business and the growth opportunities available through an increasing and strong order book. Working with Rcapital, we have provided a flexible facility that will enable the business to make the most of these opportunities and meet its ongoing growth aspirations.” Tony Young, regional sales director at Secure Trust Bank Commercial Finance

“This is a milestone moment for Nasmyth Group. We have weathered the unprecedented effects of Covid on the industry and we have emerged with a strong order book as commercial aviation begins to recover to normal levels. We have taken the opportunity to recapitalise our business and have the luxury of a strong balance sheet, long-term committed debt facilities and the potential to make acquisitions that expand our footprint further. This gives us a significant competitive advantage.” Peter Smith, CEO of Nasmyth Group

“From the outset, it was clear to us that Nasmyth Group is a fantastic business with huge potential, strong customer and supplier relationships and a talented team of dedicated professionals. We are pleased to partner with the senior Nasmyth Group team and look forward to working together to realise the Group’s potential.” Chris Campbell, Partner, Rcapital

Rcapital was introduced to the transaction by Kroll, the company’s lead financial advisor, with legal advice from Pinsent Masons. Addleshaw Goddard LLP advised Secure Trust Bank and Gateley advised management.