An engineering, fabrication and machining business in Swansea, run by the same family for more than 40 years, will pass into new ownership thanks to an equity funded MBI supported by the Development Bank of Wales.
Formed in 1979 by Anthony Beaujean, Swansea-based Afon Engineering was run by Tony before passing the reins to his sons Carl and Andrew. After decades of managing the business, which employs more than 50 people in Llansamlet, the family has welcomed on board an experienced new leadership team.
Following a £2.5 million mixed loan and equity investment from the Development Bank of Wales via the Wales Management Succession Fund and the Wales Flexible Investment Fund, an incoming management team will take on the running of Afon Engineering.
The new team includes new Managing Director Jason Thomas, formerly of Llanelli-based Teddington Engineered Solutions, and Julian Vance-Daniel, founder of Bridgend-based Vessco Engineering.
Jason Thomas said:
“We are proud to be the new custodians of Afon. This marks a momentous and proud occasion for us and we have clear intentions to let the world know about Afon across many industry sectors. Together, we will usher Afon into a new era, one that is marked by ambition and professionalism. We believe there are exceptional people working at Afon who show commitment and dedication, which has been inspiring to see and provides a great foundation for us to build on.
“Thanks to the invaluable support from the Development Bank of Wales we’re excited to step in and ensure a smooth transition for the business. Our goal is not just to preserve the legacy of Afon but also to explore opportunities for growth and development on a global scale.”
The deal was completed by Scott Hughes, Senior Investment Executive with the Development Bank of Wales, with support from Clare Sullivan, Regional Manager for New Investments.
Scott said:
“Our investment will enable the family to step away from a successful business they have worked hard to build. The new management team is skilled, with a strong track record, and is well-positioned to support the business in achieving its planned future growth.”
The deal was supported by Geldards, acting for Development Bank, alongside JCP, Azets and Harvey Business Support, acting for Afon.
Alex Butler, Corporate Partner at Geldards, said:
“We were delighted to work with Scott and the team at the Development Bank of Wales on this transaction. This latest investment demonstrates the Development Bank’s continued commitment to supporting Welsh businesses with their succession planning – helping those businesses secure a sustainable future here in Wales for future generations.”
Natalie Jones, Director at JCP Solicitors, said:
“We are delighted to have supported the incoming management team with their Management Buy-In to Afon Engineering and to have worked with the Development Bank of Wales on another successful transaction. We have spent the last six months working closely with the new management team and we’re confident that the business will go from strength to strength under their leadership.”
Jason Thomas added:
“We’re grateful to the Beaujean family for their dedication, and support throughout this transition, which has been instrumental in setting us up for a promising journey ahead.
“We would also like to thank our advisers for their support during the transaction process, especially Natalie Jones, Director at JCP Solicitors, Katherine Broadhurst, Partner at Azets and Colin Harvey, Finance Director at Harvey Business Support, who helped us achieve a successful completion.
“With this acquisition, we are committed to delivering a strong and sustainable future for Afon, continuing its competitive stature and maintaining its deep connection with its employees, customers, suppliers and the community.”
