Cutwel

Regional News

29 May 2018

NorthEdge backs MBO of engineering specialist

NorthEdge Capital has supported the MBO of engineering tooling supplier Cutwel Limited, backing the existing management team led by Adam Gillard, Graham Short and Shaunie Mangham.

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BUSINESS DESCRIPTION

Cutwel is a distributor of engineering cutting tools and machine tool accessories.

BACKGROUND

Operating from its purpose-built, 24,000sq ft distribution facility in Cleckheaton, West Yorkshire, Cutwel specialises in supplying precision cutting tools and machine tool accessories to the engineering industry throughout the UK and Ireland. Cutwel represents several leading global manufacturers including YG-1, Korloy, Gerardi, Benz and Simtek.

NORTHEDGE INVESTMENT RATIONALE

Cutwel is one of the largest independent engineering tooling distributors in the UK. Founded in 1996, the business has in recent years invested significantly in its sales and technical teams, increasing headcount to over 50 people.

This investment has resulted in strong growth, with revenue increasing from £6m in FY12 to over £16m in the year to April 2018. With the potential to expand and strengthen its network of suppliers across the globe, the business has a strong platform on which to build.

STRATEGY

NorthEdge’s investment in Cutwel will support the company as it continues to scale its sales team with investment in recruitment and training. The company aims to double headcount over the next four years and further drive sales across the SME engineering market.

The deal was led by NorthEdge Partner Andy Ball with support from Tom Rowley, Director and Nicola McQuaid, Investment Manager. Tom Rowley joins the board in a non-executive capacity. Colin Stirling, former Partner at Spirit Capital, has been appointed as Non-Executive chairman.

Adam Gillard, General Manager at Cutwel, said:“NorthEdge’s investment represents a key milestone for Cutwel. The team truly understands our values and has demonstrated a strong track record of supporting high-growth businesses.

“We are proud of what Cutwel has achieved over the past 20 years, combining great products with excellent customer service. This investment is the next step on that journey.  We look forward to working with NorthEdge to further strengthen our team, grow our suppliers’ brands and continue the strong momentum our talented team has generated to date.”

Tom Rowley, Director at NorthEdge Capital, said:“The management team at Cutwel, led by Adam Gillard, Graham Short, and Shaunie Mangham, has built a business with its people at its core, and in doing so has delivered strong year-on-year growth and a leading reputation in the sector for providing expert information and advice to its clients.”

Nicola McQuaid, Investment Manager at NorthEdge Capital, said:“We are proud to be backing a business which has consistently demonstrated its commitment to customer service and to supporting young workers and apprentices with the best possible training. This is also reflected in the historic growth which includes a great deal of repeat custom.

“We look forward to working with the management team to continue the strong momentum Cutwel has built and further strengthen the Sales and Marketing Teams with new appointments while continuing to provide the same high level of service to all suppliers and customers.”