EIS Magazine

Turnaround of UK Aerospace Precision Engineer (FGP Systems Ltd)

  |   News


Original article: http://www.eismagazine.com/turnaround-of-uk-aerospace-precision-engineer/




, December 21, 2015


Specialist precision engineering EIS investment adviser Cyrus Investment Management has announced the turn-around of UK aerospace engineer FGP Systems.


Funds raised through the Cyrus Secured Loans Precision Engineering EIS Fund 1 were used to acquire FGP in September out of administration. Following investment and a re-structuring by CIM, FGP is once again in profit with a total of 105 specialist engineering jobs saved.


FGP front sign



FGP is a top five UK aerospace precision engineering company, originally created in 1970. As a Tier 1 ‘build to print’ company, it designs, engineers and manufactures bespoke mission critical components for the leading UK, European and US civil and military aerospace industries.


Products include actuators and auxiliary power units for commercial aircraft, to ejector seats for fighter jets and business class seating for Boeing and Airbus. FGP not only designs and engineers components, but makes use of some of the most advanced techniques available, including 3D metal and plastic printing.


Chief Investment Officer of CIM Ian Watkins said: “We are delighted to have acquired this world class Precision Engineering company, retaining the entirety of FGP’s customer base, 100% of its state of the art machinery as well as 100% of its apprentices and core engineering staff.”


Managing Partner of CIM Peter Schwabach said: “FGP is the third investment CIM has made in Tier one UK precision engineering companies in line with our strategy of building value in this world class industry.  By injecting new capital, management and products we aim to increase profitability within each investee company in the portfolio and exit the aggregated businesses to a single trade or institutional buyer after three year obligatory holding period.”


Cyrus IM believes that precision engineering has long been a dedicated asset class for private equity, offering investors predictable income and capital growth. It says that is the only dedicated EIS fund manager that offers individuals the ability to invest exclusively in the precision engineering asset class.


Close Brothers Asset Finance advised on the turn-around.


Managing Director of Close Brothers Asset Finance Roger Aust said: “We are delighted to offer our services in completing the re-financing of equipment and in facilitating the Regional Growth Fund grant. We’re very proud to have supported a British engineering company with such long heritage in the vitally important aerospace sector. A pragmatic approach combined with a very sound management strategy has given the company an excellent chance of a sound future, safeguarding and creating many highly skilled jobs that are so vital for the on-going health of the local economy.”