Gateshead-based Newcastle Tool & Gauge (NTG) has been acquired by Ignite Growth, a London-based investment company focused on supporting the growth of ambitious fast-growing companies — the financial terms of the transaction are undisclosed.

Founded in 1979, NTG is a precision engineering business that manufactures low-volume, high-value parts for use in harsh conditions; it manufactures products to operate in high-temperature, high-pressure or high-stress environments.

The company’s customers originate from a wide range of industry sectors, including oil and gas, food packaging, subsea, power generation and defence. The acquisition by Ignite represents the first stage in its buy-and-build strategy in the sector.

Prior to the acquisition, NTG had three equal shareholders that had owned and managed the business since 2008. The funding has enabled two of the shareholders to retire and one to remain as a significant shareholder of the business, having also taken on the role of operations director.

Forbes Stuart, partner at Ignite Growth, said: “This transaction has enabled us to secure a very exciting investment in NTG, a resilient and growing business, built an excellent reputation for high quality over the years, delivered by a dedicated and loyal workforce.

Mike Hutchinson, NTG managing director, said: “I am thrilled to be joining NTG at such an exciting time in its development. The business has shown incredible resilience through the Covid pandemic. We now look forward to working with Ignite to build a business development capability that will match the exceptional quality that NTG produces and to bringing NTG’s to a wider audience around the UK.”

Charlie Sampy, head of operations, shareholder and former managing director at NTG, said: “Ignite were straightforward and easy to work with and they have allowed Brian, Joan and myself to achieve our aspirations while putting together a management team who understand us and our culture and can help take the business forward. The business is in good hands and I am very excited about the future for NTG.”

Debt for the investment was provided by Arbuthnot Commercial Asset Based Lending which provided both cashflow and asset based financing.