Knights has advised X-Cel Group, a Rotherham-based manufacturer of precision-machined components, on the successful completion of a management buy-out (MBO), marking a significant milestone in the South Yorkshire company’s growth and long-term strategy.
Founded in 1984, X-Cel Group operates at the forefront of advanced manufacturing, supplying high-precision components to UK industrial businesses across the renewables, defence, and oil and gas sectors. The management buy-out secures the future of the business under existing leadership and positions the Group for continued expansion in key markets.
£35m HSBC funding package explained
As part of the transaction, X-Cel Group secured a £35 million funding package from HSBC to support the change in ownership and to underpin its ambitious growth plans. Following completion of the deal, the Group intends to safeguard up to 130 jobs and increase turnover by £10 million over the next three years.
The investment will also enable a significant expansion of X-Cel Group’s operational footprint. The business is set to relocate into a neighbouring 20,000 sq ft facility, doubling its overall manufacturing and office space to 40,000 sq ft. This expansion will enhance production capacity and support the Group’s plans to meet increasing demand across its core industries.
A multidisciplinary team from Knights’ corporate practice worked closely with X-Cel Group’s management team throughout the transaction, providing strategic legal advice and ensuring the deal progressed smoothly to completion.
Knights continues to support UK businesses with management buy-outs, corporate transactions, and strategic growth initiatives, particularly within the manufacturing sector.
Key highlights:
- £35m funding from HSBC
- 130 jobs safeguarded
- 20,000 sq ft expansion
- £10m projected turnover growth