Thermal Engineering sold to Senior

Turnaround investor Privet Capital has sold Thermal Engineering, a UK-based supplier of high temperature lightweight aerospace components, to Senior. The transaction represents a 20x return for Privet.


Privet Capital (“Privet”), the turnaround investor, announces the sale of Thermal Engineering (“Thermal” or “the Company”), the UK based supplier of high temperature lightweight aerospace components, to Senior plc (“Senior”) for a consideration of £22 million. The transaction represents a 20x return for Privet.

Following the acquisition of the Company in 2010, Privet has overseen a major turnaround of Thermal, leading to a return to profitability in 2012. The improvement in the Company’s operational and financial performance has been accompanied by a successful refinancing.

Customer and supplier relationships have been enhanced, through the negotiation of long term procurement and sales contracts, providing Thermal with greater certainty on revenues and greater visibility of future costs. This has allowed management to develop a realistic [growth/business development] strategy, which together with a focus on lean manufacturing efficiency resulted in a full year operating profit of £1.6 million in 2012.

The success of these initiatives has left Thermal well positioned to realise its ambitious growth strategy, and also provides an appropriate time for Privet to exit the Company.

Commenting on the announcement Vardhan Rajkumar, outgoing Chairman of Thermal said:

“The acquisition by Senior offers Thermal a unique opportunity to continue to deliver growth and operate largely as it has done over the past 3 years, whilst benefitting from being part of a larger group. I am confident that it will grow from strength to strength as part of Senior.

“My time at Thermal has been thoroughly rewarding, and I look forward to continuing to work with Steve, and the rest of the team at Privet, as we look for further opportunities within the sector.”

Commenting on the announcement Steve Keating, Founder of Privet Capital said:

“The short time frame in which we have been able to successfully turn round the performance at Thermal underlines the capability of the team here at Privet, and provides a strong endorsement of our philosophy of arranging capital investment for companies experiencing financial stress. It is particularly pleasing that we have been able to both create and realise value, in spite of the challenging economic conditions of the last 3 years.

“The experience gained at Thermal, and the funds obtained from its sale, will provide Privet with the foundations to recreate these successes at other opportunities within the aerospace and manufacturing sectors.”



Thermal Engineering Limited +44 (0) 17 6324 2067
Max Humber

Privet Capital
Steve Keating
Vardhan Rajkumar

College Hill
+44 (0) 77 9958 7619
+44 (0) 77 8593 0156

+44 (0) 20 7457 2020
Anca Spiridon

Zinka Bozovic

Further information is available at


About Privet Capital
• Privet Capital arranges capital investment for companies experiencing financial stress. Typical situations are where companies are underperforming, over-geared, have liquidity issues, or nearing or already in administration and needing both operational and financial input.
• Typical investment of £1m – £10m in companies across a range of sectors in the UK with £10m – £200m turnover
• Privet was established and is led by Steve Keating, previously a director at 3i for ten years handling investment in restructuring situations and nine years at Deloitte Corporate Restructuring.

About Thermal Engineering
• Thermal Engineering is a UK based supplier of specialised components and assemblies to the aerospace industry, concentrating on hot and cold forming of hard alloys, fabrication, assemblies, thermal insulation and protection.
• Based in Royston, Hertfordshire, Thermal has 234 employees and is a key contributor to the local economy. Their global customer base currently includes companies such as Rolls Royce, Safran and GKN.
About Senior
• Senior is an international manufacturing group with operations in 13 countries. It is listed on the main market of the London Stock Exchange (symbol SNR).
• Senior designs, manufactures and markets high technology components and systems for the principal original equipment producers in the worldwide aerospace, defence, land-vehicle and energy markets.
• Further information on Senior plc, may be found at: