Client stories
X-Cel Group completes £35 million management buyout
Overview
About X-Cel Group
X-Cel Group is a Rotherham-based manufacturer of precision-machined components, supplying UK industrial businesses operating across the renewables, defence, and oil and gas sectors.
Founded in 1984, the business operates at the forefront of advanced manufacturing, providing high-precision engineering solutions to customers across a range of specialist industries.
Opportunity
Delivering a management buyout to secure long-term growth
As part of its long-term growth strategy, X-Cel Group sought to complete a management buyout that would secure the future of the business under its existing leadership.
The transaction, which was supported by a £35 million funding package from HSBC, was designed to safeguard jobs, facilitate investment in larger facilities, double manufacturing and office space, and support ambitions to increase turnover by £10 million over the next three years.
What We Did
Delivering specialist corporate advice to support a complex management buyout
A multidisciplinary team from Knights’ corporate practice worked closely with X-Cel Group’s management team throughout the transaction – providing strategic legal advice to ensure the successful implementation of a new ownership structure, and guiding the management buyout towards a smooth, successful conclusion that supports the Group’s long-term strategic and commercial objectives.
Impact
Completing the management buyout with funding secured for future expansion
The successful completion of the management buyout secured the future of X-Cel Group under its existing leadership team, and provided a strong foundation for future growth.
The investment will enable X-Cel Group to relocate into a neighbouring 20,000 sq ft facility, doubling its manufacturing and office footprint to 40,000 sq ft. This increased capacity will support growing customer demand and strengthen the Group’s position across the renewables, defence, and oil and gas sectors.
With plans in the pipeline to safeguard up to 130 jobs and increase turnover by £10 million over the next three years, the deal provides a strong foundation for future growth – positioning the Group to invest in further expansion, strengthen its position across core markets, and achieve continued success within the UK manufacturing sector.
Key results, in review:
- Advised X-Cel Group on a successful management buyout.
- Helped secure the future of the business under existing leadership.
- Enabled expansion through a 20,000 sq ft facility increase and projected £10 million turnover growth.
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