TEW Engineering sold to LB Foster

TEW Engineering sold to LB Foster

TEW Engineering Ltd (TEW) has been acquired by NASDAQ-listed L.B. Foster Company, in a transaction managed by Initium.

TEW is a specialist in the provision of application engineering solutions – active in the Rail, Automotive, Power Generation, and Food and Beverage manufacturing sectors. Nottingham-based, TEW manufactures Control and Display Systems, specialising in industrial process control panels, mimic display panels, and video walls for control rooms all over the world.

The business also offers innovative production automation machinery for automotive and materials handling markets. Its customer base includes Network Rail, Jaguar Land Rover, Toyota, Siemens and Coca Cola.

“We were impressed at Initium’s depth of knowledge and the depth of the team. You managed the process superbly” – Michael Spencer, TEW

L.B. Foster Company (NASDAQ: FSTR) is a leading manufacturer, fabricator and distributor of products and services for the rail, construction, energy and utility markets with locations in North America, Europe and Asia.

Deal commentary

Peter Jones, Managing Director of L.B. Foster Rail Technologies (UK) Ltd. stated, “TEW is building on five years of significant growth as customers continue to recognise their high-quality project-based work, innovative products and high level of service. There is a natural synergy, ambition and an underlying desire to work together in the markets we share – Rail, Automation Solutions and Materials Handling. We are eager to grow our business in the UK and European markets, and we have identified TEW Engineering as a perfect partner in achieving our goals.”

Michael Spencer, Managing Director, TEW Engineering Ltd, comments: “We had planned to develop the business to twice its size in the next five years, so we recognised we needed a partner to come with us to achieve this aspiration. We are delighted that LB Foster are a business with a globally recognisable brand and like ourselves, their key objectives are exceptional customer service, operational excellence and a similar cultural fit. We are delighted to now be part of the LB Foster family and we are very excited about the future together.”

Commenting on Initium’s role in the transaction, Michael Spencer added: “Initium managed the sales process very well. Superbly. We were impressed at Initium’s depth of knowledge, the depth of the team and how people were brought in at the appropriate time, also the hand holding, if it was necessary, and the reassurance.

“If we could have outlined who our perfect acquirer was going to be, it would have been someone many times our size in terms of resources. LB Foster was an absolutely perfect fit” – Michael Spencer, TEW

“If we could have outlined who our perfect acquirer was going to be, it would have been someone many times our size in terms of resources. Worldwide, our US-based acquirer LB Foster turned over $750m, had approximately 40 offices and manufacturing plants, and employed 800 people – but within the UK, LB Foster had just about the same size turnover as TEW, virtually the same number of people and two offices.

“We offered complementary solutions, but at a slightly different level. We went through the projects and we couldn’t find one where we had ever competed. As a result, LB Foster and TEW can now offer their customers so much more, and completely beyond the capability of any known competitor. So LB Foster was an absolutely perfect fit.”

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