UK-based engineering group Doncasters is looking to expand its business through acquisitions at home and abroad after its purchase by Dubai International Capital (DIC).
In parallel with the purchase, Doncasters’s management team, led by chief executive Eric Lewis, is set to reinvest in the company alongside DIC. Lewis says senior managers will increase their shareholdings by over 50%, signalling their alignment with DIC’s strategy.
“DIC brings the opportunity to significantly grow the business through acquisition,” says Lewis. “We see aerospace as the area of the business we’d like to grow the most.” The group will look at acquisitions in the UK and overseas, he says. “North America is probably the prime area we would be looking at.” Acquisitions could take place as early as next year, he adds.
DIC, part of Dubai Holding, is paying £700 million ($1.21 billion) to buy Doncasters from Royal Bank of Scotland Equity Finance. The deal is expected to be completed in February 2006, subject to regulatory approval. Doncasters’ turnover was £392 million in 2004, and is projected to be £470-475 million in 2005.
Source: Flight International