Specialist Heat Exchangers, a designer and manufacturer of cooling systems for the automotive and industrial sectors, has been bought by an Italian automotive business. RACO Group has added the Lincoln-based company to its operations after agreeing a £9 million deal.

Specialist Heat Exchangers (SHE), a designer and manufacturer of cooling systems for the automotive and industrial sectors, has been bought by an Italian automotive business. RACO Group has added the Lincoln-based company to its operations after agreeing a £9 million deal.

The company was sold by private equity firm Baird Capital Partners Europe, which has held a majority shareholding in the company since it backed a management buy-in from its founders. The deal generated a multiple of 2.2 times Baird’s original investment.

SHE’s systems are used to cool a range of fluids, including those in power assisted steering and transmission systems in high performance cars. Its clients include Ford, General Motors, Aston Martin and Alfa Romeo.

The acquired business’ senior management, led by chief executive Mike Goodchild, continue to lead the business following the deal.

In the year to the end of May last year, the company, which has 160 employees at its Lincoln and Tamworth operations, generated sales of £8.6 million and EBITDA of £1.6 million.