An 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 ten-year plan that will see it initially build annual sales to £12m by 2029.
Financed by HSBC, the management buyout (MBO) will ensure the company remains in UK ownership and in a position to explore opportunities associated with its complex tooling, stamping, 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, a vision that will see it provide sustainable and smart manufacturing solutions that shape the future of healthcare, connectivity, mobility and innovation.
“We believe we have created something special here, exporting precision parts and tools to more than 26 different countries from our base in Birmingham,” said Crozier, who has been at the firm for more than 16 years.
“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 added: “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’ll 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 Petit remaining to run the business.
Innovation 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’re 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.”
Over £5m has been invested by Brandauer in creating a precision engineering facility in Birmingham, with a further £1.4m earmarked for a new automation project in September and expansion of its precision machining capabilities over the next three years.
Advisers involved in the transaction, include Breeze, White and Black, Wilkes Partnership, Dains, Fortis Mazars and Ballards.
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