Baird expands downstream in oil and gas

 

Material Advantage Group Limited (previously called ESS Steel Holdings Group Limited), a Baird Capital Partners Europe Portfolio Company, acquires Nexus Precision Engineering

Baird Capital Partners Europe, the U.K.-based buyout firm of Baird Private Equity, has supported the acquisition of Nexus Precision Engineering Limited (“Nexus”) by its portfolio company Material Advantage Group Limited (“MAG”) for an undisclosed amount. MAG is the Sheffield based supplier of machined and semi-machined metal components to both the downhole and wellhead oil and gas markets. MAG supports major oil and gas service companies on a global basis.

MAG’s existing strengths centre upon supply chain management, metals knowledge and machining capabilities. This acquisition extends the group’s internal capabilities and extends its supply chain offering.

Nexus is a precision machining business providing the final finishing of metal components to the oil and gas industry. Based in Broxburn, near Edinburgh, the business is well invested and with a strong customer base complementary to that of MAG.

Dennis Hall, Portfolio Director at Baird, commented “MAG is a high quality supplier of semi-machined and machined components to the global oil and gas sector. This remains an exciting sector with strong growth potential. The acquisition of Nexus extends MAG further down the supply chain bringing in-house capabilities to fully machined products. This yields both enhanced proximity to the end customer as well as increasing MAG’s control of the added value. This is the first acquisition made by MAG since Baird backed its management buy-out in December 2007 and we are pleased to support the business with further funding at this exciting time in the company’s development.”

Philip Kirkham, CEO of MAG, added, “The acquisition of Nexus is a complementary strategic fit for MAG that enables us to deliver a wider supply chain solution to benefit both MAG and Nexus customers. The acquisition also brings access to new, key customer accounts and strong management that will assist our global development plans. The group’s continued organic development and our continuing interest in strategic acquisitions could not have succeeded without Baird’s support.”

About Baird Capital Partners Europe
Baird Capital Partners Europe, the U.K.-based buyout firm of Baird Private Equity, invests in U.K. middle market companies with an established annual turnover of £10m to £100m. Since 1971, it has completed over 150 private equity investments in the business services, manufactured products and healthcare sectors, where it has deep experience, knowledge and ability to add value. The group backs management teams with a strong track record and desire for further success, in management buyouts and also buy-ins, provided there is significant involvement from incumbent managers. Baird Capital Partners Europe is supported by operating resources in China (Beijing, Hong Kong, and Shanghai) and India (Bangalore), focused on facilitating and executing Asia sourcing, manufacturing and distribution strategies for its portfolio companies. For more information, please visit www.bcpe.co.uk.

About Baird Private Equity
Baird Private Equity, the global private equity group affiliated with Robert W. Baird & Co. (Baird), makes venture capital, growth equity and buyout investments in smaller, high potential companies in the United States through Baird Venture Partners and Baird Capital Partners, in China through Baird Capital Partners Asia, and in Europe through Baird Capital Partners Europe and Granville Baird, an affiliated fund manager that invests in Germany. Baird Private Equity has a global team of 80 professionals in nine offices across the United States, Europe and Asia, including approximately 20 operating professionals in Asia. Baird Private Equity and its affiliates have raised and managed approximately $2.5 billion in capital and invested in over 230 companies since the 1980s. For more information, please visit www.bairdprivateequity.com.