Coventry engineering company Nasmyth secures major investment to recover

Nasmith

Coventry-based specialist engineering company Nasmyth Group, which works in the airline, defence and related industries,  has secured siginificant investment by private investment company Rcapital.

Nasmyth, which has international operations in the US, Philippines and India, achieved sales of more than £80 million before the pandemic, but saw a dramatic drop in demand for passenger air transport during the last two years.

Following a competitive and complex transaction process, Rcapital secured an additional £20 million of new long-term debt facilities provided by Solihull-headquartered Secure Trust Bank, as part of the deal.

The long-term trends in air travel globally remain strong, and this investment will enable Nasmyth to take full advantage of opportunities within the market as aviation volumes return. Working alongside Peter Smith, Simon Beech and Stuart Fyfe as CEO, COO and CFO respectively, Rcapital said it will remain actively involved to support management, provide stability and act as a catalyst for growth.

Peter Smith, CEO of Nasmyth Group, said: “This is a milestone moment for Nasmyth Group. We have weathered the unprecedented effects of Covid on the industry and we have emerged with a strong order book as commercial aviation begins to recover to normal levels. We have taken the opportunity to recapitalise our business and have the luxury of a strong balance sheet, long-term committed debt facilities and the potential to make acquisitions that expand our footprint further. This gives us a significant competitive advantage.”

Chris Campbell, Partner, Rcapital, added: “From the outset, it was clear to us that Nasmyth Group is a fantastic business with huge potential, strong customer and supplier relationships and a talented team of dedicated professionals. We are pleased to partner with the senior Nasmyth Group team and look forward to working together to realise the Group’s potential.”

Tony Young, regional sales director at Secure Trust Bank Commercial Finance, said: “We have worked closely with the Nasmyth Group management team and Rcapital to understand the business and the growth opportunities available through an increasing and strong order book. Working with Rcapital, we have provided a flexible facility that will enable the business to make the most of these opportunities and meet its ongoing growth aspirations.”

Rcapital was introduced to the transaction by Kroll, the company’s lead financial advisor, with legal advice from Pinsent Masons. Addleshaw Goddard LLP advised Secure Trust Bank and Gateley advised management.