Rotherham-based manufacturer X-Cel Group has completed a management buyout (MBO) supported by a £35m funding package from HSBC UK, paving the way for expansion into new international markets and sectors.
The precision engineering specialist, which supplies machined components to the renewables, defence and oil and gas industries, secured the eight-figure investment from HSBC UK to facilitate a change in ownership following the retirement of founder and chairman Andrew Taylor.
Under the terms of the deal, directors David Barton-Phillips and Tim Heron have each taken a combined 35.7 per cent shareholding, with the remaining equity distributed evenly between Louis Wragg and Dale Stocks.
The HSBC UK funding will also underpin a significant expansion of the company’s operational footprint. X-Cel Group is set to move into a neighbouring 20,000 sq ft rented facility, increasing its total space to 140,000 sq ft. The additional capacity is expected to strengthen export operations, particularly across the United States and South East Asia, while supporting entry into new sectors including aerospace and nuclear.
David Barton-Phillips, director at X-Cel Group, said the transition marked a pivotal moment for the business.
“The ownership transition has provided X-Cel Group with a strong foundation to build further on our growth strategy for the future,” he said. “This milestone marks a new chapter for the business, as we continue to expand our services to clients overseas and our offerings across Oil & Gas, Aerospace, Renewable and Nuclear markets.”
Following the MBO, the company will safeguard 130 jobs and is targeting a £10 million increase in turnover over the next three years.
Lee Manterfield, global relationship manager at HSBC UK, said the bank was pleased to support the next phase of growth.
“It’s fantastic to see X-Cel Group continue to fly the flag globally for manufacturing excellence in South Yorkshire,” he said. “As the market evolves, demands for X-Cel services look set to increase and diversify. We look forward to seeing this next chapter for the business as it targets further international expansion.”
Founded in 1984, X-Cel Group exports precision machined components to customers across oil and gas, renewables, defence, petrochemical, nuclear and power generation markets worldwide.
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