Nylacast Components Division in Leveraged Buyout

The Components Division of Nylacast has been acquired from the parent company via a management-led leveraged buyout.

Nylacast had been divided into three divisions: Materials, Components and Technology.

The buyout was led by Components Division management, including Managing Director Mussa Mahomed. The group teamed with Bank of Scotland Integrated Finance and KPMG; management will take controlling ownership with BOS and KPMG taking minority stakes. In all, the transaction is expected to run in excess of £30 million (USD $59 million).

Components designs and manufactures precision engineered nylon parts, primarily bearings, bushings, thrust washers, guides, wear bars and spacers.

Capacity is for parts up to 4 meters long and 2 meters across, produced on 5-axis CNC milling and turning machines. In addition, secondary operations can be performed, such as gear cutting, knurling, broaching, honing and grinding.

Worldwide, market segments served include everything from aircraft and aerospace to conveyors, food processing equipment, and railways to shoe manufacturing and water treatment. Customers include Delphi and Caterpillar.

With manufacturing operations located in Leicester and in South Africa, Components has UK home office locations on Lunsford Road, Hastings Road, and St. Barnabas Road. Under the new company, most production will reportedly move under one roof, to a combined single operation in nearby Thurmaston, maintaining the current workforce of nearly 300 people. A satellite sales and marketing operation is located in the United States.

Mr. Mahomed commented: "This transaction has given us a great opportunity to drive the business forward over the years to come. We are delighted to have the backing of Bank of Scotland Integrated Finance and look forward to a long and successful partnership."

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