LONDON: Following a strategic review of the Group’s engineering capabilities in relation to its wider strategy, the Board of TP Group has agreed to sell its Manchester-based subsidiary TPG Engineering Ltd. to Rcapital.
The Board believes that the sale will maximise shareholder value by allowing TP Group to focus on its strategy to deliver high-technology consulting, digital solutions and bespoke engineering solutions to critical programmes in the global space, defence and energy sectors.
These include the continuing work on clean energy solutions, carbon capture and hydrogen fueling systems at the gas technology centre in Portsmouth.
The sale has been agreed for a nominal cash consideration of £1.00. In the year ended 31 December 2019 TPG Engineering made losses before taxation of £1.6 million and as at 30 June 2020, TPG Engineering had net assets of £1.7 million.
Rcapital provides private investment, commercial expertise and hands-on support to transform and grow businesses. Working together with management teams Rcapital focusses on driving performance and delivering results. It prides itself on being more than a growth and turnaround investor, seeing potential in complex situations and working with management teams to share in success.
Since 2004, Rcapital has made over 70 portfolio investments from a wide range of industries and geographic spread. Rcapital structures straightforward transactions to meet the needs of sellers, management teams, employees and stakeholders to resolve complex situations.
TPG Engineering, based in Greater Manchester, is a designer and manufacturer of large, high-integrity gas and fluid management equipment and other fabricated structures in specialist metals, principally for the oil and gas market.
The business’s equipment is relied upon by international customers to manage their dangerous or valuable process fluids safely and efficiently.
TPG Engineering has more than 60 years of heritage and is accredited to multiple quality and defence standards. The business’s customers are located worldwide and include major energy companies and first tier prime contractors.
Phil Cartmell, Chief Executive Officer of TP Group, commented: “This agreement with Rcapital means that TPG Engineering and its staff have a good opportunity to build upon their core strengths and relationships in the oil and gas sector alongside like-minded businesses in Rcapital’s portfolio, and we wish the team in Dukinfield every success in their new venture with their new owners.”
Chris Campbell, Partner at Rcapital, also commented: “We are excited about the opportunity that this acquisition brings. Whilst the business’s core markets have been impacted by Covid-19, the business has solid fundamentals, built on quality products and high levels of customer service.
This acquisition complements other investments in the Rcapital portfolio, which will help support the management team, who are motivated to drive the business forward.”
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