Agriculture, food and engineering group Carr’s Milling Industries has acquired Chirton Engineering in a deal worth £2.75m.
Carr’s produces farm products and ingredients for the ready meal and baking industries. Its engineering division, which North Shields-based Chirton will become a part of, makes equipment for the nuclear, oil and gas and renewable energy sectors.
As part of the deal – which was overseen by Square One Law and Tait Walker – Carr’s will acquire the entire share capital of Chirton for £2.75m and an additional £2.55m could become payable subject if certain conditions are met over the next five years.
Chirton manufactures products for businesses operating in offshore oil and gas.
Based in North Shields, it services an established global customer base, including IHC Merwede, Oceaneering, and Proserv Offshore.
Recently it expanded into component manufacturing for manufacturers including McLaren, as part of a strategy of collaborative innovation with its core customer base.
The 52-strong firm, based at West Chirton South Industrial Estate, will continue to be led by its existing management team, including managing director Paul Stewart.
Tim Davies, chief executive of Carr’s, said: “We are thrilled to be acquiring Chirton Engineering. The business and its management team are recognised in their industry and Chirton is renowned for delivering quality product innovation to its customers. The business will contribute to the ongoing development of our innovation programme within our Engineering division and we look forward to welcoming the new team into the Group.