Engineering stake snapped up

In a new acquisition the Reece Group has taken 100% stake in the Responsive Engineering Group for an undisclosed sum.

Responsive Engineering provides a range of subcontract manufacturing services including machining, welding/fabrication, pressing, assembly, testing as well as laser and waterjet cutting, predominantly to the oil and gas industry.

Its annual turnover is about £15m and it employs more than 180 staff across three sites on the Team Valley, Gateshead.

The Reece Group, is the holding company for several North East engineering businesses, including Pearson Engineering and Pearson Engineering Services, based in Walker, Newcastle and Velocity UK, based in Sunderland. These operate in the defence, subsea and construction sectors. Group turnover in 2011 was more than £211m and the group has about 450 employees.

Reece Group chairman, John Reece, said: “We are delighted to announce the acquisition of Responsive Engineering Group. As well as providing us with access to the oil and gas market, its fabrication service compliments that provided by one of our existing businesses, Pearson Engineering Services, which produces larger fabrications for both the defence and subsea markets.

“We are looking forward to working with the Responsive management team to continue to build on the high quality work and sales growth they have achieved.”

Responsive Engineering Group managing director, Peter Bernard who launched Responsive Engineering in 2000 and with Paul Torday undertook a management buyout in 2005, will remain with the business.

He said: “I am delighted with the acquisition of the company by the Reece Group. Since then we have successfully followed a strategy to grow the business. The Reece Group is highly regarded in the region as a strong business with an excellent engineering pedigree.

“The group is both ambitious and committed to the growth of engineering in the North East. All of which is good news for Responsive Engineering, as we will continue to develop and grow our enterprise as part of that commitment.’’

“This is an excellent fit for both parties and there are many upsides for everyone. I am particularly pleased that our management team will remain in place and that there is security and a very bright future for all our employees under the new ownership”.

The Reece Group corporate advisors were UNW, led by Paul Kaiser. Legal advisors were Dickinson Dees, led by Iain Pritty.

Responsive Engineering Group’s corporate advisors were PWC, led by Paul Mankin. Legal advisors were Ward Hardaway, led by Martin Hull.