Venture capital investor Foresight Group has led a £3.5 million buy-in management buy-out (BIMBO) involving Scottish business Aerospace Tooling.

Dundee-headquartered Aerospace Tooling specialises in the remanufacturing of ‘high value’ aerospace and industrial gas turbine components.

The deal is being structured on a part equity, part debt format and gives Foresight a majority shareholding.

Foresight has made the investment from three of its venture capital trust (VCT) funds (Foresight VCT, Foresight 3 VCT and Foresight 4 VCT).

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John Seaton, former CEO and new executive chairman of Aerospace Tooling, says that Foresight shares the ‘passion and enthusiasm’ for the products provided, and sector serviced, by the manufacturing firm.

He adds, ‘I am confident that we have found the right partner and we have the right structure in place to deliver the future growth plans for our business.’

As well as shifting Seaton from CEO to executive chairman, current general manager John Green will become operations director and the business will see new faces brought in through Fraser Clarkson (finance director) and Ben Blackwell (business development director).

Daniel Connell, senior investment manager at Foresight, says that Aerospace Tooling has proved its resilience in the recent challenging market conditions.

‘This transaction continues to build the deal flow momentum at Foresight which in the last five years has seen more than £96 million released for the benefit of investors from 21 investments at an average of 3.7x cash multiple.’

Foresights’ last investment saw the firm lead a management buy-out at broadcast hire company Procam TV.