Turnaround investor Privet Capital has acquired the manufacturer Thermal Engineering.

Turnaround investor Privet Capital has acquired the manufacturer Thermal Engineering.

The deal, which was for an undisclosed sum, saw Privet acquire 100 per cent of the equity of Thermal. RBS provided loan facilities to fund the buy-out and future company growth.

Ian Slater, a director at Privet Capital, says that Thermal has been hit by the downturn in the aerospace industry over the past two years.

But he adds: ‘We believe that Thermal is now well positioned with our support to take advantage of the anticipated upturn to meet the forecast increase in demand for aircraft. We also believe that the market in which Thermal operates remains fragmented and, therefore, there may well be opportunities for selective acquisitions.’

Under the terms of the deal Vardhan Rajkumar, a former director of telecoms engineering company Trylon TSF, has been appointed as Thermal’s chairman.

Hertfordshire-based Thermal was founded in 1988 and manufactures components for the aerospace industry, primarily aircraft engine parts. The company employs 200 staff and has a turnover of around £10 million.

Thermal’s products are used in aircraft including the Boeing 777 and the Eurofighter Typhoon.