London-based
TGM Industrial Group, a firm that specialises in the acquisition, transition and growth of owner-managed SME businesses, has acquired
Union Fasteners Ltd, one of the UK’s leading manufacturers and distributors of specialist industrial fasteners.
Union Fasteners now becomes the third industrial fastener company within the TGM Group alongside RCF Bolt and Nut Co (Tipton) Ltd and GSS Fasteners Ltd, which TGM acquired in March 2020.
Based in Darlaston in the West Midlands, Union Fasteners has been providing a wide range of nuts, bolts, washers and related products for over 40 years to various key industrial sectors, including oil and gas, petrochemical, defence and construction.
Adrian Garrett, who has been working in the fastener business for 34 years, including 24 years with RCF and GSS, will assume the role of managing director for the three integrated business units.
Mr Garrett said: “The acquisition of Union Fasteners will allow the TGM Fastener Group to become a major player in the fastener industry, serving the UK and European markets. UnionFasteners has an excellent reputation for providing high-quality products with a quick turnround to customers across the UK and the European Union, supported by a high-calibre professional staff.
“The Union acquisition will allow us to extend our customer offering across a wider range of complementary products, cross-sell these products within our expanded customer base, and acquire new customers attracted by our enhanced business model.”
Cross-selling opportunitiesTGM co-founder Eric Kolodner added: “The Union Fasteners acquisition reflects the strategy we have been pursuing over the past five years to acquire synergistic SME businesses with niche manufacturing and precision engineering expertise, and brings our aggregate annual revenue to almost £25 million. This acquisition will generate synergies not only within our three fastener businesses, but also within the broader TGM Industrial Group, including through cross-selling opportunities to existing customers.
“We will implement the acquisition consistent with our traditional approach of maintaining the location of the business, retaining all members of staff, offering training opportunities to key staff, introducing innovation to the business including digital marketing initiatives and investing in new equipment.
“This approach ensures a smooth transition that benefits all constituents of the acquired business, including staff, customers, suppliers and the outgoing seller-managers, as TGM focuses on the continuity, stability and growth of the business.”
TGM co-founder Jon Frewin said: “While the precision engineering and industrial manufacturing sectors have experienced headwinds over the past couple of years, with continued short-term uncertainties, we remain very optimistic about the future of UK SMEs operating in these sectors.
“Various trends, including the on-shoring of manufacturing activities as corporations limit their reliance on far-reaching global supply chains that have proved unreliable over the past few years, underscore our confidence that the opportunities to acquire and grow SMEs operating in these sectors will remain very attractive. In light of our five-year track record, TGM is well-positioned to capitalise on these opportunities.”