Johnston Carmichael advises on engineering firm’s acquisition

Perth-based Edwards Engineering has been acquired by investment group Cartalex as part of a plan to build a significant new business in the engineering sector in England and Scotland.

Led by Ben Carter and David Alexander, Cartalex has been established as an acquisition vehicle to buy expert engineering firms with a track record of growth and technical prowess.

The acquisition was made through equity from a number of private investors and banking facilities provided by Barclays Bank, led by Jamie Grant.

Lyn Calder, of accountants Johnston Carmichael, advised on the transaction and is now reviewing the market for other potential acquisition targets to be added to the Edwards Engineering stable.

Edwards Engineering was established in 1969 and has delivered projects spanning the food and drink, manufacturing, infrastructure and architectural sectors. The company also has extensive experience in the agricultural, malting and whisky sectors.

Turnover at the firm was £5.5 million in 2015/16, and Ben Carter said the management team were targeting a 20 per cent increase by the end of the next financial year. This will be delivered through a programme of investment to build on the existing capabilities in the business and its ability to manage challenging installation projects across the engineering sector.

Ben Carter said: “Edwards Engineering marks the first step in a very exciting plan for the next few years, and we’re very confident that, by focusing on our customers, the business has a lot of potential to be a real engine of growth across the wider group.

“We’re investing in developing relationships across a number of sectors where Edwards has delivered excellent work in the past, and where we think there are opportunities to do more for our customers.

“By targeting a number of other strategic acquisitions to augment and complement our existing capability, we believe we can create a compelling proposition in a market where quality is absolutely critical.”

Lyn Calder said: “Engineering is a sector where Scottish firms can rightly claim a world-class track record, and this deal provides Edwards Engineering with a renewed purpose under the new owners to build on the impressive success the business has achieved to date.

“The investment plans in place for the next few years provide an exciting narrative for a team which has strong ambitions to create a very competitive and expert business in the Scottish engineering market.”