Brandauer, a historic Birmingham manufacturer, has been purchased by its management team with the vision of creating a world-leading precision engineering specialist. Current CEO Rowan Crozier, manufacturing director Stuart Berry and non-executive director David Chapman, have joined forces to buy Brandauer, with the trio immediately laying out a 10-year plan that will see it initially build annual sales to £12 million by 2029.
Financed by
HSBC, the deal will ensure the company remains in UK ownership and in a perfect position to explore opportunities associated with its complex tooling, stamping, R&D and growing its newly founded consultancy service. More than 20 new jobs could be added to its existing 64-strong team when the vision is realised, one that will see the company provide sustainable and smart manufacturing solutions that shape the future of healthcare, connectivity, mobility and innovation.
Mr Crozier, who has been at the firm for more than 16 years, said: “We believe we have created something special here, exporting precision parts and tools to more than 26 different countries from our base in Birmingham. When the family shareholders made the difficult decision to sell, there was lots of interest from overseas, some of our customers and private equity, but deep down we knew that could mean changes to the fabric of the business. With this in mind, the management team decided we’d take matters into our own hands by leading an MBO.”
He continued: “Importantly, all directors are in this for the long term. We have carefully crafted a ten-year business plan that leverages our history and proven track record with a desire to move into new markets, including power storage, aerospace and defence. There will also be a continued push to invest in automation to further increase our productivity.”
Brandauer’s history dates back to the 1780s when Jean Petit, a French Huguenot refugee, fled to England to escape religious persecution, setting up a metalworking business in Birmingham. His grandson Joseph Petit followed in his industrial footsteps, gaining his apprenticeship at one of the largest pen nib manufacturers in the world before forming his own company Ash, Petit & Co in the 1850s. A few years later, Carl Brandauer took over the company and the Brandauer name became a part of local culture, with Joseph remaining to run the business.
Innovation in Brandauer’s DNAInnovation has been a big part of the firm’s DNA for the following 163 years, during which time it has evolved from pen nibs to manufacturing consumer electronics, core automotive electronics parts and now to today’s eclectic mix of micron-tolerance components for electrification, construction, healthcare and male grooming products.
The Petit family – now in its sixth generation - still made up the majority of the 42 shareholders who sold the business. Paul Rummer, who has been a shareholder and on the board for more than 17 years, said: “It was a momentous decision to sell, but we are delighted that it has been purchased by Rowan, Stuart and David, who have done such a fantastic job growing Brandauer and making it a truly world-class manufacturer.”
“Staying in UK ownership and in Birmingham was critical to our decision. The MBO team are hugely passionate about manufacturing in the Midlands and I am looking forward to seeing how they move the business forward, while retaining a keen commitment to providing high-skilled employment to local people.”
Over £5 million has been invested by Brandauer in creating a world-class precision engineering facility in Birmingham, with a further £1.4 million earmarked for a new automation project in September and expansion of its precision machining capabilities over the next three years. There will also be a major focus on the King’s Award-winning company’s rapid prototyping service, which sees it use a combination of advanced laser cutting, ‘tool-less’ precision metal forming and stamping to take a design from a simple 2-D drawing into a fully formed 3-D component in as little as 48hr.
Stuart Berry, who started as an apprentice at Brandauer more than 20 years ago, continued: “There is a real momentum behind the company and the MBO will accelerate this, giving us even more freedom to take our manufacturing expertise into new countries and new markets. Importantly, we are massive advocates of growing our own staff and apprentices, with nearly 25% of the workforce coming through this route. The MBO future-proofs the company for them, and the hope is that one of the next generation of the team will eventually take over from us.”
Mr Crozier concluded: “HSBC has been our banking partner for more than 12 years and it has shown fantastic faith in us, delivering a finance package that not only allows us to complete the MBO but gives us the working capital to expand at pace. The initial focus will be on organically growing sales and diversification, but there is definitely a desire to explore the future acquisition of complementary businesses that fit our precision journey.”