MML invests €17.3m in ATA Group

Karin Wasteson
07 March 2013

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MML Capital Partners has invested тЌ17.3m in Ireland-based engineering business ATA Group.

MML will hold a 65% stake in ATA, alongside management and Irish investment boutique FL Partners. The deal was sourced through an intermediary and discussions in exclusivity took seven weeks.

The development strategy for ATA is to acquire more companies and there is a strong pipeline for new deals, the GP told unquote".

The fresh capital will be used to fund the transatlantic acquisition of US-based SGS Tool's Burs business.

ATA was the subject of an MBO in 2008 led by chief executive Peter Cosgrove and backed by FL Partners.

Company
Based in Cavern, Ireland, ATA is a global manufacturer of carbide burs as well as associated pneumatic hand-tools and abrasives. Based in Cleveland, SGS Tools Group produces tungsten carbide end milling tools and drills.

The acquisition of the SGS Bur business will enlarge ATA's thin bur production, with operational synergies as well as complementary worldwide sales coverage.

The combined group including the newly acquired SGS Bur business currently employs 190 people and had pro-forma combined revenues of €43m in 2012.

People
Ian Wallis, Richard Mayers and Robert Devonshire led and executed the deal for MML, with both Wallis and Mayers joining ATA's board. Peter Cosgrove is chief executive officer at MML.

Advisers
Equity – PwC, Paul Tuite, Ronan Somers, Tim O'Connell, Ronan MacNioclais, Declan Doyle, Kevin Morris (Financial due diligence, tax); Taylor Wessing, Emma Danks, Tom Cartwright, Lowri Hardcastle (Legal); AMR, Jim Easton, Matthew Altham (Commercial due diligence).
Vendor – NCB, Liam Booth, Shane Lawlor (Corporate finance); Mason Hayes Curran, David O'Donnell, Daragh O'Shea (Legal).
Management – Mattheson, Tim Scanlon, Fergus Bolster (Legal).
Debt – William Fry, Rachel Stanton (Legal).