From left, Roger Anderton and Phil Kite, from Reece Group, and Peter Bernard and Steve Simpson from Responsive Engineering
ONE of the region’s top engineering companies has bought up a Tyneside firm in a bid to break into the oil and gas market.
Reece Group has bought Gateshead-based Responsive Engineering – which provides manufacturing services including machining, welding, pressing, assembly, testing as well as laser and waterjet cutting, mainly to the oil and gas industry – for an undisclosed sum.
Responsive’s current turnover is around £15m and the business employs more than 180 people across three sites on the Team Valley, Gateshead.
The Reece Group is the holding company for a number of large-scale North East engineering businesses, including Pearson Engineering and Pearson Engineering Services, based in Walker, Newcastle, and Velocity UK, based in Sunderland.
These businesses operate in the defence, subsea and construction markets. Turnover in 2011 was over £211m and the group has around 450 employees.
Reece Group chairman John Reece said: “As well as providing us with access to the oil and gas market, Responsive Engineering’s fabrication service compliments that provided by one of our existing businesses, Pearson Engineering Services, which produces larger fabrications for both the defence and subsea markets. We are looking forward to working with the Responsive management team to continue to build on the high-quality work and sales growth they have achieved.”
Phil Kite, the Reece Group director responsible for acquisitions, said: “This deal is good news for both businesses.
“Each has been successful in their own markets. The Reece Group brings an ethos of investing in the design and development of new products and services and has considerable experience in developing export sales.
“Responsive Engineering has heavily invested in the latest technology and is regarded as one of the North East’s leading subcontract manufacturing businesses.
“This opportunity came at the right time for both businesses – the Reece Group looking to enter new markets and Responsive Engineering looking to expand and secure the financial backing to do so.”
Responsive Engineering’s managing director Peter Bernard said: “I launched Responsive Engineering in 2000 and, together with Paul Torday, undertook a management buyout in 2005. Since then we have successfully followed a strategy to grow. The Reece Group is highly regarded in the region as a strong business with an excellent engineering pedigree.
“The group is both ambitious and committed to the growth of engineering in the North East. All of which is good news for Responsive Engineering, as we will continue to develop and grow our enterprise as part of that commitment.”