UK mid-market private equity investor Phoenix Equity Partners has invested GBP18 million to fund the management buyout of the engineering consulting business of ERA Technology (ERA) from Cobham plc.
ERA is a specialist engineering consulting business focused on industrial markets, with a unique set of technical skills and expertise, and a strong brand dating back to its foundation in 1920. ERA provides condition assessment, materials design and testing, forensic engineering, safety assessments and failure investigation services to a wide range of private and public sector clients.
Phoenix is backing a team led by Rob Dilworth, formerly a senior executive at Intertek plc, to lead the buyout, alongside ERA’s existing management team.ERA was formed in 1920 as a research association, and developed over many years into a centre of excellence for electrical and mechanical technology. It was converted to a trading entity in 2001 and acquired by Cobham in 2003.
ERA employs around 100 staff, who will continue to be based in Leatherhead, Surrey. Phoenix’s initial investment will support the growth and development of ERA, and additional capital has been earmarked to support further development of the business into the attractive Testing, Inspection, Certification and Consultancy (TICC) sector.
Cobham will retain ERA’s advanced technology and niche product business, which will continue to trade as Cobham Technical Services.
This is the second investment from Phoenix’s GBP450 million 2010 Fund, which was raised in June 2010. Phoenix identified the TICC sector as an attractive area for investment over a year ago and, having identified and engaged a high quality management team, worked side by side with the team to source proprietary acquisition targets.
Tim Dunn, a Partner at Phoenix, says: “We are delighted to be backing this ambitious and experienced management team in the TICC sector, led by Rob Dilworth. ERA has a very strong reputation with its customers for high quality, specialist service, and a fantastic heritage on which we will look to build.”
Rob Dilworth, CEO, says: “I am greatly looking forward to working with the existing management team of ERA to develop the business in an exciting and growing market. I have been working alongside the team at Phoenix for several months to develop our business plan, and believe that Phoenix will be strong and enthusiastic partners as we look to execute our plan and build the business.”
Phoenix and the management team were advised through the acquisition by Robert W Baird.
