South Yorkshire manufacturer completes MBO

Left to right: X-Cel’s David Barton-Phillips, Dale Stocks, Tim Heron and Louis Wragg, with Lee Manterfield a global relationship manager at HSBC UK

Rotherham-based X-Cel Group, a manufacturer of precision-machined components for the renewables, defence and oil and gas industries, has completed a management buyout (MBO) with the support of an eight-figure funding package from HSBC UK.

The company, founded in 1984, has secured a £35 million funding package from HSBC UK to support the change in ownership, following the retirement of founder and chairman Andrew Taylor. Under the MBO, directors David Barton-Phillips and Tim Heron will each acquire a combined 35.7% shareholding, with the remaining shares distributed evenly between Louis Wragg and Dale Stocks.

The HSBC UK funding deal will also support the expansion of the business, with operations set to move into a neighbouring 20,000ft² rented facility, increasing X-Cel Group’s total footprint to 140,000ft². The additional space will enable the company to scale its export capabilities, particularly across key international markets, including the USA and South East Asia, while also supporting plans to enter new sectors, such as aerospace and nuclear.

Following the MBO, X-Cel Group will secure 130 jobs across a range of roles, supporting an anticipated £10 million increase in turnover over the next three years. Mr Barton-Phillips said: “The ownership transition has provided X-Cel Group with a strong foundation to build further on our growth strategy for the future. This milestone marks a new chapter for the business, as we continue to expand our services to clients overseas and our offerings across oil and gas, aerospace, renewable and nuclear markets.”

Lee Manterfield, global relationship manager at HSBC UK, concluded: “It is fantastic to see X-Cel Group continue to fly the flag globally for manufacturing excellence in South Yorkshire. As the market evolves, demands for X-Cel services look set to increase and diversify. We look forward to seeing this next chapter for the business as it targets further international expansion.”