Dains Corporate Finance provides due diligence services on United Tooling Solutions’ double acquisition

Deal summary

The Dains Corporate Finance team has recently performed financial due diligence on Kelvin Power Tools Limited and Drake Tooling and Abrasives Limited for the purpose of the acquisition of these companies by United Tooling Solutions Limited, with funding provided by Shawbrook Bank.

On 19th March 2021 UTS purchased the Glasgow based Troy member Kelvin Power Tools, the fourth addition to the Troy Group family in the past twelve months. The company was formed in 1977 by John Breslin and is a supplier of leading brand industrial power tools and industrial consumables to trade buyers, as well as offering a repair and maintenance service on a range of tools.

On 23rd April 2021 UTS purchased the Newton Abbot based Troy Group member Drake Tooling, the fifth addition to the Troy family in the past twelve months. The company was established in 1976 to supply the precision engineering market with abrasives and cutting tools alongside a technical support offering. Drake Tooling is one of the South West’s leading engineering distributors offering a wide range of products and services including the very best in abrasives, cutting tools and measuring equipment.

Roy Farmer and Rob Wilson of Dains LLP undertook the financial due diligence on the businesses which included a review of their financial performance for the last two years, a review of the balance sheet for the last two years, and a review of the forecasts for the next three years.