Specialist Swindon firm's major role in key acquisition

A specialist designer and manufacturer of high temperature furnaces and environmental chambers is looking towards a bright future thanks to an acquisition overseen by Swindon corporate finance experts Watersheds.

Severn Thermal Solutions Ltd was founded 20 years ago by husband-and-wife team Nigel and Tracy Ryder, alongside their colleagues, Peter Collett and Jason Grout, building on years of experience working in the industry.  

Under their leadership, the Gloucestershire-based Severn has become a market leader for furnaces and environmental chambers for a wide variety of applications within industry and academia, with a team of 11 skilled engineers providing specialist equipment used across the globe.

With ultimate goals of securing future prospects and development opportunities for Severn, as well as enabling Nigel and Tracy to plan for their own retirement, Watersheds crafted a proposition for buyers, enabling Severn to present as an attractive, credible acquisition target.

Severn has been acquired by SDI Group plc, a Cambridge-headquartered specialist in high-tech businesses across the science, technology and medical markets, who recognised the business as a natural addition to its portfolio. With a shared focus on quality, innovation and autonomy, SDI’s post-acquisition model allows Severn to continue operating independently, with new opportunities for investment and global customer access.  

Importantly, the acquisition will facilitate a greater reach for SDI into high-value clients across 25 countries, including Severn’s long-standing work with the UK Atomic Energy Authority

John Stopher and Premal Pattani of Watersheds led the transaction, achieving the best possible results thanks, Watershed says, to their deep understanding of the business, its niche market, and the Ry­­ders’ personal objectives.  

Not only did their efforts culminate in a highly competitive bidding process, they also brought the deal to completion in just eight weeks. 

John Stopher said: "From day one, we knew Severn was something special. Our job was to help Nigel and Tracy realise the value they had built, while finding a partner that shared their vision and values. 

“It was incredibly important to find the right fit for Severn, both to support the retention of their highly skilled engineers within the business, as well as future business prospects and development.  

"Despite completing the deal in just eight weeks, speed was not a deciding factor – the fit had to be right.  In order to do this effectively we worked with Severn to initially identify the evolution within the business that would be required to bring the reporting up to the level of detail required by a likely buyer, working with key partners to help them demonstrate the level of business credibility to attract large corporate acquirers.

“As a result, we’re proud to have helped create a strong, competitive process and secure a result that exceeded expectations on timing, value, and fit."

Tracy Ryder, co-founder of Severn, added: "The Watersheds team made everything so easy. They really understood what mattered to us, not just the financials, but the future of our people and the legacy of the business. 

"They helped us see what was possible and supported us through every step."

Professional advice was also provided by RWK Goodman, SME Finance Partners, and Birketts.  For more information on Watersheds, visit www.watersheds.ltd.uk.