Chamberlin sells subsidiary for £3m
Castings and engineering group Chamberlin has sold a specialist industrial manufacturing subsidiary in a £3 million deal.
The Walsall-based group will focus on its foundry and machining operations following the sale of Petrel in KItts Green, Birmingham.
Project Apollo, part of investment firm Longacre Group, has bought Petrel, which operates across the world in the oil and gas, marine and defence sectors.
Petrel’s 35 employees will be retained by the new owners and will add to its 700 employees across Europe, the United States and Asia.
Chamberlin plans to invest in the development of steel production at Russell Ductile Castings and spheroidal graphite iron production at Chamberlin and Hill Castings.
Proceeds from the deal are expected to reduce the group’s liabilities by £2.6m and contribute a profit of no less than £2m in 2024. £600,000 will be paid to HSBC to reduce Chamberlin’s debt and release certain charges over the shares and assets of Petrel.
Revenue at the group increased by £100,000 – or six per cent – to £10.6m in the first half of 2023-2024 to the end of November. It made an underlying operating profit of £100,000 from a £100,000 loss a year earlier.
Chairman Keith Butler-Wheelhouse said: “Performance in the first half has been broadly in line with the Board’s expectations. The sale of Petrel will provide the group with the financial resources and balance sheet strength that it needs to focus on its core iron foundry and machining operations and for both businesses to pursue their respective strategies with greater impetus."
He said the transaction for Petrel would enable the group to grow and develop its core business operations from a stronger financial footing.
“We believe that Longacre Group are the ideal new owner for the business and are well positioned to support Petrel and the ongoing development of its strategy," he added.
