Peterlee-headquartered
GT Group, one of the North East’s most prominent engineering and manufacturing businesses, has returned to regional ownership following a management buy-out (MBO) supported by Newcastle-based
RG Corporate Finance (RGCF).
The company, a major manufacturer and supplier of engine air and emission control systems to international commercial-vehicle OEMs, has been acquired from private equity firm
Rcapital by its incumbent management team: managing director Steve Wright; finance director Ian Black; HR director Kelly Kean; and commercial and technical sales director Dean Machnicki. Funding for the transaction was provided by
Cynergy Bank through a range of facilities.
Founded in the 1970s by North East businessman Geoff Turnbull, GT Group has grown into a leading supplier of engine air valve systems for medium- and heavy-duty commercial vehicles and off-highway equipment. Its customer base includes global manufacturers such as Daimler, Volvo, Scania, JCB, MAN and John Deere. The company employs more than 180 people at its Peterlee facility and operates additional manufacturing capability in India to support international export programmes, driving strong profitability and revenues of over £40 million.
The business was sold to Germany-based
Knorr-Bremse in 2016 when founder Geoff Turnbull retired. Following a strategic review, Knorr-Bremse divested GT Group in January 2025, with Rcapital acquiring the business. Since then, Rcapital has worked closely with the management team, supporting strategic activities and enabling the company to reach an ideal position for sale earlier than anticipated — paving the way for the long-held aspiration of a management buy-out (MBO). Under its new ownership structure, the management team intends to build on opportunities presented by global requirements for on-highway and off-highway engine emissions compliance.
Exciting momentSteve Wright, managing director of GT Group, said: “This is an exciting moment for everyone at GT Group, where we are returning the business to North East ownership and personally taking on the legacy of the company’s well-respected founder, Geoff Turnbull — entrepreneurial spirit, agility and support of the local community, have always been part of the company’s DNA.”
He added: “Further, we have a highly experienced and motivated team, world-class products and deep relationships with global OEMs, and as the global industry evolves towards new emissions standards, we are exceptionally well placed to help manufacturers meet these challenges through innovation, engineering excellence and responsive customer support.”
Carl Swansbury, of RGCF, concluded: “GT Group is a long-standing, stand-out North East manufacturer with a global reputation and a long history of innovation, technical excellence and strong leadership. The management team acquiring the business has the capability, vision and commitment required to take GT Group into its next phase of growth.
“Returning the company to North East ownership is a hugely positive milestone, not only for the business itself but for the wider region. It reinforces the depth of engineering talent that exists in the North East and the crucial role regional manufacturers continue to play in helping the commercial vehicle industry achieve lower emissions.”