Finance For Enterprise (FFE), based in South Yorkshire, has invested £250k in DINH Ltd to facilitate the acquisition of AAP Metal Fabrication Services Ltd. The move will allow AAP, a company based in Jarrow, Tyne & Wear, renowned for its expertise in the Subsea, Offshore, and renewables sectors, to continue its operations under new ownership.
The buyers, Gordon Watt and Jeremy McLeod-MacKenzie, are experienced business owners and qualified accountants with a successful track record in engineering and metal fabrication. The acquisition aligns strategically with their existing business, Washington Waterjet Ltd (WWJ), located in the same area.
Under the new ownership, AAP’s general manager will assume day-to-day operations with support from Terry Hall, MD of WWJ, who will also become the Managing Director of AAP. Jeremy McLeod-MacKenzie will provide financial and strategic guidance to both businesses.
Jeremy McLeod-MacKenzie expressed optimism about the acquisition, stating: “AAP has built a strong reputation for delivering innovative solutions to local clients promptly. With the potential to expand AAP’s geographical reach and drive growth beyond the local market, there are promising opportunities ahead.”
The acquisition is expected to create two new jobs within the next year, following the business’s projected revenue growth. Neil Wade, Senior Business Lending Manager at FFE, shared his satisfaction in supporting entrepreneurs in acquiring their fourth engineering business, ultimately safeguarding and creating jobs in an area with high unemployment rates.
This acquisition marks the initial deployment of FFE’s new £25m facility, a part of the £62m CIEF funding from Lloyds Bank and Big City Capital. The deal was facilitated by Pegasus Funding Solutions, with additional funding sourced from cash, invoice finance, and deferred consideration.