A South Yorkshire based Titanium Castings Foundry has secured new Private Equity investment in a deal supported by Castle Square Corporate Finance, the same Yorkshire advisers who advised them on a MBO four years ago.
Castings Technology, established over 100 years ago, has completely turned its fortunes around since the Management Buy-Out, completed in 2021, which saw Richard Cook, MD, and Chairman, Kevin Parkin take the reins.
As the UK’s only commercial Titanium investment castings company, demand for components has sky-rocketed in the past few years, across all the sectors the company operates in.
Currently sharing facilities with the University of Sheffield’s AMRC, on the Advanced Manufacturing Park in Rotherham, the company’s order book has increased to the point it has outgrown its existing facilities requiring a move to its own, larger, dedicated site.
And to do so they needed to seek investment.
Kevin Parkin and Richard Cook led the investment and the existing Board all remain in position.
“When we made the decision that we needed to expand further into our own premises, we immediately contacted Kevan Shaw of Castle Square Corporate Finance to help us gain investment.
Our previous experience of working with them, through the Management Buy-Out, was exemplary and so we had no hesitation in contacting them again” said Kevin Parkin.
The £15 million investment facility for new premises, equipment, and creating new jobs was funded by Zachary Asset Holdings, a family investment office.
Castle Square Corporate Finance, the Sheffield and Leeds based Corporate Finance boutique, advised the shareholders. The team, led by Kevan Shaw, Managing Partner, assisted by Richard Weston, Associate Director, and Joe Potts, Assistant Manager, were engaged to seek an investment partner and ran a structured fundraising process, advised on the funding negotiations and project managed the transaction process to successful completion.
Kevan Shaw said “We were delighted to be invited to manage this investment deal following our involvement with Castings Technology’s MBO in 2020/21. It is fantastic to see the progress since that time, with the company experiencing 225+% growth in sales, and over a 25% increase in staff.”
Robin Haller of Zachary Asset Holdings added “It was great to work with Kevan Shaw and his team at Castle Square team again on this transaction.”
Wake Smith Solicitors’ Rebecca Robinson, Director and Head of Corporate, provided legal advice to the management team including dealing with due diligence information requests and negotiating the investment documentation, facilities agreement and security documentation. Mark Cooper of BHP advised on tax matters.
Rebecca Robinson said “We are proud to have supported Castings Technology through this significant funding development. The company has outgrown its facilities and this investment allows it to move forward, and further its potential to become one of the largest Titanium foundries in the world.”
