09/12/2009

Finance Wales invests in specialist engineering company

Finance Wales has invested £1.5million funding in specialist engineering company Jenkins and Davies as part of a management buy-in (MBI).


The company provides engineering services in a range of sectors, although specialising in the petro-chemical industry, undertaking maintenance and overhaul, storage tank refurbishment and heat exchanger maintenance. Located at Pembroke Dock, West Wales, Jenkins and Davies employs more than 100 people. David Wright and Martin Kiss have bought in to the business and will work closely with the previous owners, Mark Davies and Stephen Smedley, to ensure a smooth transition. Mr Wright will become Financial Director and Mr Kiss, Managing Director, as part of the MBI.

The company was established in 1969 and has worked closely with customers throughout South Wales, including oil refineries in West Wales. It is one of the only companies in the UK capable of providing maintenance services on heat exchanger systems within the oil industry.

“We have an excellent reputation within the UK petro-chemical sector for our specialist engineering services. The opportunity arose for us to buy the business and work closely with the existing management team. Investment funding from Finance Wales was a crucial part in securing the MBI,” said Mr Wright. “We have a strong relationship with our existing customers and this is something we want to build on through new investment. We also see new opportunities in other areas and we are keen to pursue these.”

Mr Kiss added: “It is business as usual for Jenkins and Davies Ltd. We have a terrific workforce that provides a first-class reliable service to our customers, and our priority is to maintain that level of service and reliability. I am delighted that both Mark and Stephen will be continuing to work with us to make sure we continue to give the best service we can.”

The company’s main areas of operation include plant shut-down maintenance, ongoing maintenance services. They are also specialists in heat exchanger maintenance and the refurbishment of oil and gas storage tanks.

Rhian Pugh and Nick Sylvester, Investment Executives at Finance Wales, worked on the deal. Rhian said: “The company is well established and has a strong track record with its customers. The management team were offered an opportunity to buy the company through natural succession and have plans to take the business forward. Finance Wales has been pleased to have supported this through an equity and debt deal.”

Advisors on the deal were Hugh James Solicitors, HW Corporate Finance, PBD, Quinn Partnership, and Capital Law.