Harrison Drury has advised the owners of a Lancashire rubber manufacturer on its acquisition of a Cheshire counterpart in a seven-figure deal that will create substantial business growth.
Dexine Leyland Rubber Technology has purchased Lymm-based Elastomer Engineering as part of a strategic expansion programme.
The acquisition will enable Dexine to acquire significant intellectual property, along with a wide range of specialist equipment. Combined with Dexine’s current operations, this will significantly enhance product development and manufacturing capability for both businesses.
Established in 1966, Elastomer makes high specification rubber mouldings in all commercially available rubbers and cast polyurethanes. The business specialises in rubber-to-metal bonding and the processing of advanced materials, which it supplies to industries including defence and oil & gas. Elastomer has a turnover of £1.5m and an 18-strong workforce.
Dexine designs and manufactures complex elastomeric products and produces a range of rubber compounds, including products with oil and fire resistance properties, as well as vibration damping. The business supplies sectors such as defence, rail, industrial & chemical, oil & gas storage, and marine safety. With a £4m turnover, Dexine employs 32 staff.
The corporate and commercial team at North West law firm Harrison Drury advised Dexine on the deal. Dexine received lead financial advice from the corporate finance team at Preston-headquartered MHA Moore and Smalley.
The transaction will see Elastomer’s shareholders Christopher Gardner, John Gardner, and Michael Gardner stepping back to pursue other interests, while James Gardner will continue in a consultancy role in the business post-transaction.
Chris Turner, a shareholding director at Dexine, has taken over the helm as Elastomer’s new managing director.
Chris said: “There are so many synergies between Dexine and Elastomer that both companies will benefit massively from this acquisition. We have acquired not only an extended product range available to all customers, but an enhanced capability with a range of specialised equipment unique in the industry. Customers will start to see immediate benefits.”
Jack Stephenson, solicitor in the corporate and commercial team at Harrison Drury, said: “This is a significant and ambitious transaction that will enable the enlarged business to expand and prosper in the highly specialised rubber technology sector. Dexine has a strong and capable management team and I am confident they will continue to drive further growth going forwards.”
Stephen Gregson, corporate finance director at MHA Moore and Smalley, commented: “We are really pleased to have been able to help Dexine carry out its successful acquisition of Elastomer. As Chris, points out, the two companies are a very strong fit commercially and the combined entity creates a true centre of excellence in polymer technology and its practical applications.”