Engineering firm KMF Group bought out by its founding family

The management buyout (MBO) sees founding director Michael Higgins and sons Gareth and Daniel, who have worked at the business for a combined 85 years, take full ownership of KMF Group. The Higgins family worked with HSBC UK to secure the MBO after the group's former co-owner, Dacoll Enterprises, sought to sell its 50% stake.

Following the news of the buyout, the group has confirmed ambitious growth targets as part of its 50-year anniversary in 2021. The firm will focus on continued technological investment and further market expansion with its growing UK and Slovakian sheetmetal manufacturing plants and UK-based precision engineering facility.

Gareth Higgins, managing director and co-owner of KMF Group, said: "We are delighted to have secured an MBO to keep the group in family ownership.

"We are now looking to drive forward with continued technological investment which will see us scale-up our in-house capabilities, upgrade our production facilities and enter new markets – both in our UK and Slovakian engineering facilities."

The group remains committed to being a high quality, agile and forward-thinking engineering firm well positioned for the future.

Paul Franklin, HSBC’s relationship director for Staffordshire, said: “HSBC UK is committed to supporting the growth of local businesses in Staffordshire, so we’re pleased to have backed the Higgins family in their management buyout. With fresh ideas and an ambitious growth strategy, KMF Group is well-positioned to capitalise on the UK’s buoyant engineering sector.”

Established in 1971 by Mick Higgins, KMF Group employs over 500 people in factories located in Newcastle-under-Lyme and Trencin, Slovakia. The business’s 240,000ft² of modern sheetmetal fabrication and metal engineering production facilities operate 24 hours, seven-days-a-week, serving a wide range of customers in a variety of sectors such as aerospace, food processing, electrical distribution, vending and telecoms.

The deal was part of HSBC UK’s £12 billion lending fund to support SMEs in the UK, with £500 million committed to businesses in the West Midlands.

KMF www.kmf.co.uk