Company Reorganisation for Aerospace Manufacturing

Sector: Aerospace manufacturing 

Background:

The Company was owned by Japanese investors who also owned two other aerospace companies in the UK.
As separate companies, they were individually dependent on parental funding. The investors requested a review of the options available to them to optimise the performance of their UK interests.

Challenge: 

To reorganise the three companies by integrating them into a single trading entity and create a common identity within the aerospace industry which had previously considered them as individual companies.

Solutions:

  • Various types of due diligence (financial, legal, HR, commercial etc) was carried out with the support of a local commercial law firm appointed to help with the reorganisation.
  • Refinancing of the enlarged organisation with UK funders.
  • Communication to key stakeholders and press information released to advise the industry on the changes.

Benefit:

  • Greater value and quality of consolidated assets available to utilise as security to funders.
  • Economies of scale by dispensing with the multiple performances of support tasks which were concentrated into a head office facility at the largest of the three companies.
  • Streamlining of manufacturing operations so that each site became a specialist in specific processes, rather than generalists competing for similar work which had previously been the case.
  • Enhanced reputation as all sites benefitted from corporate level quality approvals.
  • The company rapidly became recognised as a bigger player within the industry, with the additional gravitas bestowed upon it by the increase in size and enhanced range of its capability, capacity, and range of product offering.
  • The enlarged company was later acquired by a Private Equity firm which realised the owners investment.

 

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