Bolton Engineering Co Limited and its subsidiary Silcoms, have been successfully bought by the management team of Keith Harrison, Keith Hindle, John Cottam and John England. The MBO team acquired the £12.5 million turnover business from the existing shareholders to develop the business and safeguard jobs.

Preston law firm Napthens Solicitors and Blackburn-based accountants Pierce advised the MBO team on the deal, which was funded by GE Commercial Finance.

Keith Harrison said: “This second generation MBO restores ownership and control to the directors of the company and provides the structure required to take the business forward.”

Silcoms produces machined rings, casings, seals and segments, as components or assemblies, for the aero-engine and gas turbine industries; and chain and conveyor systems for the food industry.

The company, which can be traced back to 1939, today employs over 120 staff and its clients include Rolls-Royce Plc, Kelloggs and Warburtons.

John Green and Nadeem Hussain from Blackburn-based accountancy and business advisory group, Pierce, advised the MBO team on the financial structuring and tax issues involved in the acquisition, which was funded by GE Commercial Finance.

John Green, managing director of Pierce Corporate Finance Ltd, said:

“We thoroughly enjoyed working with the management team, vendors and funders to find the right solution for them all. The management team is hugely experienced and this is a fitting reward for their efforts over the years and provides opportunity for the future.

“We look forward to continuing to work with them and the trading subsidiary Silcoms Limited in the years ahead.”