Newcastle-under-Lyme based engineers KMF Group have acquired precision engineering business Greenway Pepper in a move which will help to realise growth ambitions.
The acquisition will see Greenway Pepper renamed as KMF Precision Engineering to fit with the branding of the KMF Group.
KMF Group already consists of the companies KMF Precision Sheet Metal, based in the UK, and KMF Precision Sheet Metal, located in Slovakia, and now the recently acquired KMF Precision Engineering is set to help realise ambitious plans to achieve sales of £50 million by 2021 when KMF is 50 years old.
KMF already offers its customers a machined component service through Greenway Pepper as a sub-contract service. The acquisition means that there can now be a choice of a fully integrated service or a standalone offer through KMF Precision Engineering.
KMF Group MD Gareth Higgins explains: "Greenway Pepper has been a key supplier of ours for over 20 years and we have always felt a synergy in our culture and ethos."
"We approached directors Greg Pepper and John Smith and they agreed the timing was right for both companies to venture into the acquisition. The geographical location and market position of Greenway Pepper means it is an ideal fit for us."
Plans were quickly implemented to consolidate Greenway Pepper to new premises on the neighbouring Parkhouse Industrial Estate. The new 40,000 sq ft building will house the KMF Precision Engineering team of 35 employees and will future-proof the planned further expansion.
KMF Group currently has 50 apprentices trained in the Apprenticeship Academy. They will increase Greenway Pepper's current apprentice scheme from one to a minimum of five in 2016.
Gareth Higgins commented: "Greenway Pepper has been a strategic supply-chain partner for some time, so we know of the business and its significant strengths. The acquisition is based on the huge potential of the business which will realise significant opportunities in the already established customer base of KMF Precision Sheet Metal. This, complemented with the investment plans of the KMF Group means that KMF Precision Engineering has a very bright future."
"The move to new premises will provide real impetus for KMF Precision Engineering to grow substantially with the support of KMF's brand and customer base. The sales targets are quite ambitious, but with the right strategy they are achievable."
"In addition, existing and new customers are set to gain as we aim to improve the service levels and competitiveness of the KMF Group with benefits such as shorter lead times, improved quality and greater efficiencies across all three sites."
Greenway Pepper MD Greg Pepper will become Managing Director of KMF Precision Engineering. Gareth Higgins commented: "With over 25 years experience in the industry it was critical to the success of the new business that Greg remained in that post. He will be supported by group Financial Director Jon Eeles, and directors, Terry Stanway, Keith Nicholl, Daniel Higgins and myself. He has a young and capable management team that I am confident will continue to go from strength to strength."
"The company already has a broad knowledge base, so this continuity is vital and will help with the aggressive growth plans we have for the medium term. I have known Greg for a number of years, his ability, entrepreneurial spirit and drive fits perfectly with the KMF model and growth plan."
Greg Pepper commented: "This is a very exciting development for both our customers and employees. We have worked closely with KMF for a long time and felt that the move into the KMF Group was a natural business progression. We now have new premises, opportunities for increased levels of investment and are part of a leading UK engineering group with ambitious growth plans."
"We have already seen the aggressive ambition of the Group which has allowed us to place orders for over half a million pounds worth of new machinery. This will allow us to achieve a major market share within the aerospace industry as KMF Precision Sheet metal currently delivers in excess of £4 million worth of components to this sector."