Durham City’s leading law firm, Swinburne Maddison LLP has advised Bishop Auckland-based Teescraft Engineering Ltd (TEL) in connection with the acquisition of Ashington based UTEX, who provide components into CAT Peterlee and Komatsu among others.
Teescraft seized the opportunity to acquire the trade and assets of the metallic division of UTEX Industries UK Limited, when it became clear from media reports that the firm was facing closure.
The acquisition of UTEX, now named TEL Ashington, will allow Teescraft to expand its business in a new, yet complementary market sector. Not only have 36 full-time jobs been preserved through the acquisition, but the successful engineering firm plans to create 10 more jobs at the Ashington site by the end of 2019.
Established since 1981, Teescraft has built up an enviable reputation for producing precision components for power related applications within the automotive, transmission, agricultural and oil-related industries. Managing director, Rob Yorke, believes the acquisition will complement the firm’s current business interests. He said:
“When we met up with the UTEX team, it was clear the synergies between both companies were strong and we had the potential to pick up new customers. We are fully committed to the Ashington workforce and plan to create ten more jobs by the end of the year as we grow the business. In fact, we have just been awarded a £1m contract which will be machined at Ashington.
“Our relationship with Swinburne Maddison has grown strongly over the last three years. We contacted them again knowing we needed to complete the process very quickly and they did not let us down. The entire deal was concluded within four weeks, the speed of the acquisition process being vital for the firm’s American owners. Without Swinburne Maddison’s support the acquisition may not have happened at all.”
Swinburne Maddison’s team was led by partner, Martyn Tennant, head of the corporate and commercial team with support from partner, Kate Stephenson from real estate and employment law specialist, Sharney Randhawa.
Commenting on the deal, Martyn Tennant, said: “We were delighted to be asked to provide legal advice on this important strategic acquisition just one year on from our last deal for Teescraft - its acquisition of LH Quarry Plant. Given the breadth of expertise we have within our team, together with our knowledge of Teescraft’s business, we were able to transact this deal efficiently and in a short space of time.
“It is encouraging that despite the general uncertainty prevailing around Brexit, a regional firm is sufficiently confident about the future to make an investment of this type within the region. We have greatly enjoyed working with Teescraft again and wish the firm all success for the future.”