Precision engineering firm acquired by private equity-backed investment group

A South West-based precision engineering business has been acquired by a private equity-backed investment group to support the next phase of its growth.

Fordhouse has bought Automatic Industrial Machines Ltd (AIM), a Somerset-based company which supplies Tier 1 aerospace and defence programmes, in a platform investment to support a wider UK consolidation strategy. 

The acquisition was said to provide Fordhouse with an established entry point into the precision engineering market.

it combines AIM’s highly automated production capability with long-standing relationships  across aerospace, defence and advanced manufacturing. 

Headquartered in Clevedon, AIM provides high-precision components  into demanding environments, supported by ISO 9001 and AS9100 accreditation and long-term  supply relationships with customers including Airbus, BAE Systems and GKN Aerospace.

The business has achieved 102 per cent growth between 2020 and 2024.

The deal marks the first step in Fordhouse’s buy-and-build strategy in the sector. Further acquisitions are expected as it looks to build a broader engineering group. 

Nicholas Ashcroft of Fordhouse said: “We believe in the revitalisation of British industry and are excited to build a high-growth, dynamic  advanced engineering group around AIM. With a deep family-run legacy, AIM is a well-invested  business with strong technical competence and an impressive customer set. We specialise in acquiring and working with owner-managed businesses to overcome capital and capacity  constraints, so they can unlock their full potential. We look forward to helping AIM grow and  welcoming further businesses into the group.”

Rob Kendall, former owner of AIM, said: “It was important to find the right home for the business. Fordhouse and Patrick understand what makes AIM special and have a clear plan to build on it. I am pleased to stay involved, remain invested in AIM’s future, continue working closely with customers and support the next phase of growth, while safeguarding the legacy.”

In the short term, the founders of AIM will remain with the business to support a transition before retiring.

Howard Weston, managing director at Lucas & Weston, said: “AIM is a business that has quietly become embedded in critical aerospace and defence supply  chains. Its ability to deliver consistently, combined with a high level of automation, made it  particularly attractive in a market where reliability and accreditation are non-negotiable. 

“We ran a competitive process with strong interest from both trade and financial buyers. Fordhouse stood out for its clear buy-and-build strategy and its understanding of how to scale a business like  AIM without disrupting what already works.

“This follows the sale of Progress Engineering in Cornwall last spring as we continue to see sustained  demand for well-run UK engineering businesses, particularly those with accreditation, long-term  contracts and exposure to sectors such as aerospace and defence.”

Alongside Lucas & Weston advising as lead advisor, the shareholders of AIM were advised by Mogers Drewett on the legal side and Webb & Co for financial due diligence and tax. Fordhouse were advised by Cooley and Moorcrofts on the legal side and Wilson Partners for financial due diligence and tax.