- Midlands M&A market continuing to benefit from the strength of Jaguar Land Rover
Remploy Automotive, the market leading provider of components and sub-assembly services to the UK automotive industry, has been acquired by Arlington Industries Group Limited in a deal advised upon by a KPMG Corporate Finance team, led by Stephen Craik and Khush Purewal.
The transaction, which secures the future of all Remploy Automotive employees following a period of uncertainty, is further demonstration of how the Midlands M&A market continues to benefit from the strength of Jaguar Land Rover (“JLR”).
Remploy Automotive is a leading provider of components and sub-assembly services to the automotive industry, including both original equipment and the aftermarket. The original equipment division supplies more than 1.3 million units per annum in 80 sub-assembly variants, with the aftermarket division providing kitting and packing services alongside supply chain management for global automotive manufacturers. In the year ended 31 March 2013, Remploy generated revenues of approximately £57 million.
The business is a strategic tier one supplier to JLR, demonstrating the continuing interest in M&A opportunities where the OEM relationship exists. The new owner intends to target future growth across the business’ facilities in Birmingham, Coventry and Derby.
Khush Purewal commented: “There is no doubt that the success of JLR presents a unique opportunity for the automotive supply chain in the region. The Remploy transaction represents the third JLR-related deal since July 2013, following the sale of Covpress International Holdings Limited and the RGF’s investment in Cab Automotive Limited.”
Simon Heath, who leads KPMG’s dedicated automotive supply chain M&A team, added “We are continuing to experience significant buyer appetite for both financial investment and corporate consolidation where there is a JLR connection.”
Arlington Industries Group is a newly-formed group that is committed to acquiring supply chain companies in the automotive and aerospace sector. The Group has significant access to funds and anticipates being a serial acquirer over the coming years, with the aim of building an internationally recognised group.
David Roberts, Group Chairman, commented: “Remploy Automotive is an excellent addition to our global business. We see it as a unique opportunity, representing the very best in Corporate Social Responsibility and advanced manufacturing and assembly. We already have a number of projects that are well suited to Remploy Automotive that will be introduced in the first six months and which will expand the business, providing a positive sign of our investment intentions.”
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