Published: January 18, 2024 | Updated: 18th January 2024
Dorset-based precision seal manufacturer DP Seals has been sold to Swedish multinational Lagercrantz in a deal supported by PKF Francis Clark and Frettens Solicitors.
The transaction paves the way for the company’s next phase of growth while allowing for the retirement of current MD Andrew Piper.
DP Seals employs more than 50 staff at its Poole headquarters and supports a wide range of sectors, with blue-chip clients including Eaton Aerospace, Siemens and Mercedes AMG. Its components can be found in Royal Navy submarines and Formula 1 cars.
It’s set to enjoy a high degree of independence under new owner Lagercrantz UK, which typically operates a decentralised model with regards to its subsidiaries.
Andrew took over the role of MD from his father and founder David Piper, who along with wife Barbara now retains a shareholding in the firm.
As part of the deal arranged by Chris Potts, Sophie Swift and Paul Stout of PKF Francis Clark, Andrew will stay with DP Seals for the next year to ensure a smooth handover.
He said: “Having not been involved in selling a company before, setting out on this process was a little daunting.
“As a family business, both my parents and I have a huge emotional investment in the company and wanted to see it go to a good home.
“PKF understood our concerns and priorities. At the outset, they steered us on reasonable valuation expectations in the current market and gave us financial planning advice to determine if such a valuation would meet our personal needs in retirement.
“What really shone through was Chris and Sophie’s ability to help us take the emotion out of an emotive subject, providing a voice of reason to help us understand issues from all points of view and ultimately reach positions that were acceptable to both sides.
“Looking forward, it’s exciting to bring DP Seals to the next level alongside a stable main owner who takes a long-term view and brings extensive industrial and international experience.
“I look forward to working with Lagercrantz, in partnership with our own highly skilled team, to take advantage of the growth opportunities for the company’s products in the market.”
The lead team at PKF Francis Clark were joined by Lisa Whitbread, Michelle Cordy and Callum West from the firm’s tax advisory team.
Paul Longland, Zoe Watson and Oonagh McKinney of Frettens Solicitors provided sell-side legal advice, while Richard McGlasham of DLA Piper covered the buy side.
Chris Potts, corporate finance director at PKF Francis Clark, added: “DP Seals is a great example of the SME businesses we support every day.
“The high regard in which it is held by its multinational customer base is testament to the quality of its unique products, processes and capabilities.
“Our firm has supported DP Seals and the Piper family for a number of years. It was important to us not just to maximise value but to find a buyer that would preserve their legacy.
“We look forward to continuing to support the company on its next phase of growth under its existing management team and the stewardship of Lagercrantz.”
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