RWE sell Ferrybridge engineering workshop to TGM Industrial Group
HMT LLP advised global leader in renewable energy RWE on their disposal of Ferrybridge Engineering Workshop business to TGM Industrial, an integrated group of precision engineering and industrial manufacturing companies in the UK providing innovative solutions to a broad range of customers and sectors.
The Ferrybridge site is one of the most prestigious and historically important for the UK’s power industry; with the workshops housed within the turbine hall of a grade 2 listed former power generation site. Established 40+ years ago, the workshop served an external client base until 2017 before becoming a predominantly dedicated service centre for RWE’s UK power infrastructure.
The Ferrybridge Engineering Workshop provide expert large-scale workshop facilities enabling critical repair and maintenance of power generation equipment and provision of engineering services to conventional and renewable power generation markets in the UK.
The Ferrybridge site consists of a 15,000 m2 fully equipped workshop with an extensive range of machine tools capable of handling components up to 120 tonnes as well as welding, blasting, and specialist measuring capability.
Since 2019, the new owner, TGM Industrial has acquired seven other companies that have synergies with the Ferrybridge workshop capabilities, these will ensure that the Ferrybridge Engineering Workshop will continue to provide services to the UK power industry and potentially to other industrial sectors.
The sale enables RWE to continue making use of the Ferrybridge workshop competencies in the future but as a customer rather than an owner. RWE has agreed to a Provision of Services Agreement as part of the sale, this provides TGM with a 36-month agreement for the provision of parts and services to support RWE’s UK gas power station outages, with an option to extend in the future.
HMT acted as lead advisors on the transaction which included helping RWE prepare for the carve out of the operation, running a strongly competitive sale process, negotiating key terms and supporting the business through an extensive due diligence process.
Roger Bewley, Senior Asset Developer at RWE commented:
HMT have guided the process with insight and expertise. Their knowledge of potential acquirers was first-class, as was their technical support around the deal structure and financial modelling. We would like to thank the team at HMT for their contribution in supporting RWE in getting the deal done.
Wendy Hart commented:
“We were aware from the outset of the process that Ferrybridge Workshops carries with it a prestigious history and some unique capabilities. It was important to find them an acquirer who can offer them an exciting future. We have thoroughly enjoyed working with the RWE and TGM teams to help bring this transaction to a successful conclusion and wish the Workshops many more years of success under their new ownership.”
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