Birmingham-based Precision Micro (www.precisionmicro.com) — a manufacturer of precision metal components — has been acquired from global aerospace, defence and energy group Meggitt in a £22.5 million management buy-out (MBO) backed by mid-market private-equity investor LDC.

The Precision Micro plant in Erdington makes more than 50 million high-precision metal components each year for customers that include Rolls-Royce, Mercedes, Jaguar and Bentley.

The company has offices in Germany and the Netherlands, and more than 75% of its £15 million sales come from overseas markets.

Managing director Ian McMurray said: “We see enormous opportunity across our markets, as equipment manufacturers look for ever more cost-effective, reliable, safe and high-performing components.

“Securing the backing of an experienced and supportive partner like LDC means we can invest further in the business, leveraging our unrivalled technical expertise and processing capabilities to further support our customers around the world.”

Chris Handy, investment director at LDC, said: “Precision Micro’s reputation for technical excellence, service and innovation is world-class.

“Our investment is all about helping Ian and his team to unlock the potential of the business by facilitating further investment in its processing capabilities, manufacturing capacity and new-product introduction.”