Southampton: Co-op funds engineering MBO

Ambitious Giro Engineering plans further growth following a management buyout (MBO) funded by the Co-operative Bank.

The acquisition of the business was funded by John Murphy, senior corporate manager and Neil Wade, business development manager at the East Midlands corporate banking centre of the Co-operative Bank in Nottingham.

Craig Parker and Ann Thomas, existing joint managing directors of Giro Engineering, bought the business after years of succession planning and following the retirement of Paul Williams and Chris Galley.

Giro, which employs 27 staff at Park Gate, near Southampton, Hampshire, is a leading designer and manufacturer of diesel fuel injection pipes for marine and other industries. It has been at the forefront of fuel pipe technology since it was founded in 1980.

Parker who has been with Giro for 19 years, said: “We continue to exceed the demands placed upon us by the major engine builders across the world. Through steady investment Giro has focused on the ever increasing fuel pressures and stringent cleanliness standards that the modern diesel engine requires.”

Ann Thomas is proud of Giro’s achievements and its standing within the engineering community, and said: “We are one of very few companies that maintain an apprentice programme which ensures the quality of Giro staff coming up through the ranks”.

John Murphy of the Co-operative Bank said: “This deal shows that even in today’s uncertain economic climate, we are still very much open for business and lending to companies with impressive business strategies, such as Giro Engineering.

“We are in a strong position to provide funding for existing and new customers, unlike some other lenders who seem to be more reluctant to provide funding at this current time.”

The Bank was advised by Roger Harcourt of law firm Berryman and Philip Handley of Greenhalgh & Co undertook due diligence.

David Copley and Rob Holmes of Tenon Corporate Finance advised on the MBO and Steven Grant of law firm Warner Goodman provided legal advice. Giro’s founders were advised by Stephen Pierce of lawyers Bond Pearce.