ALL PLAIN SAILING FOR DIESEL MARINE DEAL

Advisers from landlocked Birmingham have spearheaded a marine engine specialist’s project to up anchor and sail off under new management.

The company, Diesel Marine International, which claims to be on of the world’s leading suppliers of reconditioned engine parts, has been the subject of a £10 million management buy-in/buy-out.

Birmingham corporate finance advisers Invex led the deal, which has seen locally based businessman Peter Jackson join the management team of DMI as chairman.

Other key members of the new management of the North Shields company include former Torday & Carlisle managing director Eric Brightmore, and previous European managing director Menno van der Hulst, who will retain these roles.

The deal is part of a strategic disposal programme launched by Torday & Carlisle. As part of the same deal, a further Torday business, Northampton-based Valve Techniques, has been bought and sold on to Birmingham firm Hollow Extrusions.

DMI was founded in the late 1960s and today has a staff in excess of 300 and a turnover of £17 million.

The business specialises in the full reconditioning of parts used in large bore and medium speed diesel engines which power the world’s tankers, container ships, bulk carriers and cruise ships.

DSMI claims to be the world market leader in this field, with an 18 per cent share of the total market, and a 30 per cent share of the reconditioning market.

The company has its headquarters and two manufacturing plants in the UK, together with two manufacturing plants in Holland and one in Germany. The business also has four joint venture operations in the US and China, and has a vast international network of representatives in most of the world’s major sea ports.

Funding for the deal has been provided by the Birmingham office of Barclays Ventures, and Barclays Bank. The latter provided £6 million of working capital and senior debt, and the former £2.25 million of equity.

Mr Jackson said: “This is a good quality business with strong management, and potential to leverage from its current market position.”

James Grenfell, of Invex, said: ”The deal required the co-ordination of over 20 separate advisers operating in seven countries, and demonstrates the ability of the Birmingham financial community to complete complex and challenging international private equity deals.”

Richard Bucknell, of Barclays Ventures, said: “DMI now has the opportunity to enhance its geographic coverage, and exploiting its unique distribution network with additional product sales.”

All but one of the advisers involved in the deal are Birmingham based, and, besides Invex, included Heatons and George Green (legal advisers to management), DLA (legal adviser to Barclays Ventures) and Robson Rhodes (financial due diligence).

Nottingham based Browne Jacobson advised Barclays Bank.