PwC supports 42 million Aero Stanrew acquisition

08 January 2016 Consultancy.uk

TT Electronics has bought Aero Stanrew for a reported £42 million. The deal will further TT Electronics’ offering of hardened electronics to the aerospace and defence markets. PwC provided corporate finance expertise to the seller WestBridge Capital on the deal.

TT Electronics is a developer and manufacturer of high-end rugged electronics for some of the world’s harshest environments for players in industrial, transportation, aerospace, defence and medical markets. The group, encompassing more than a dozen brands, has since its initial stock market debut in 1988 expanded through a wide range of acquisitions, coming to focus on the electronics market in 2000. Today the group has a turnover of over £500 million and 6,000 employees worldwide.

Aero Stanrew was founded in 1945 and is headquartered in Barnstaple, Devon. The company designs and produces electromagnetic components and electronic systems for harsh environments and safety critical applications. The company’s primary focus is the aerospace, oil and gas and defence markets, which have been major growth areas in recent years. The company employs around 230 employees that work in its 6 modern facilities, as well as its manufacturing facility in Tunisia.

TT Electronics acquires Aero Stanrew

In 2012 four of Aero Stanrew’s managers, including now CEO Clive Scott, performed a management buyout worth £8.5 million for the company. The deal was backed by private equity fund WestBridge. Since the manoeuvre, the company has enjoyed stellar growth, employee numbers are up by 50%, while sales forecasts are projected to hit around £18m in the current year. The almost 195% increase in export earnings following the deal, saw the company receive the Queens Award for Enterprise.

TT Electronics’ acquisition of Aero Stanrew sees WestBridge exit from the company following its successful transition to a market leader. The deal, worth £42 million, will provide TT Electronics with a company that provides a number of synergies related to electronics for harsh environments in the aerospace and defence segment, accelerating TT’s strategy to offer a wider range of capabilities to a broader base of tier 1 customers. For Aero Stanrew, the deal further improves its range of offerings to their already existing client base.

Darren Jukes | Cara Haffey, PwC

Deal advisors
PwC’s Industrial Corporate Finance team, led by Industrials Partner Darren Jukes and Head of Industrial Manufacturing Cara Haffey, acted for WestBridge Capital and its management team on the deal. “We are delighted to have supported WestBridge Capital and the Aero Stanrew management team on this important transaction,” comments Jukes. “As a world leader in its field, the business represented a highly attractive opportunity, receiving strong interest from a range of international trade buyers. Ultimately the fit and potential for development with TT Electronics was compelling, and the transaction allowed WestBridge Capital to generate a strong return for its investors.”

Clive Scott, CEO of Aero Stanrew, adds: “Throughout the process PwC distinguished themselves with the quality of the advice, pragmatic hands on approach and the strength of its global network of relationships with the key strategic trade buyers. This delivered a highly competitive process, and ultimately resulted on a transaction which delivered a great result for all stakeholders, with a new owner that will provide a great home for Aero Stanrew and all its employees.”