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Dow Schofield Watts Midlands advises on sale of AJ Engineering and NEWCo to RSK

RSK has further strengthened its UK engineering capabilities, specifically in water, infrastructure and energy, through the acquisition of Scotland-headquartered AJ Engineering and Northern Engineering & Welding Company (NEWCo). The move supports the group’s ambition to provide end-to-end environmental and engineering services in its core sectors.

AJ Engineering was founded in 1999 by Alan James, with NEWCo joining the business through acquisition in 2015, and the businesses operate across the UK from offices in Forres and Fort William in Scotland. The team of more than 100 engineers and machinists delivers a range of engineering services, including complex steel fabrication, computer numerical control (CNC) machining, cladding and mechanical engineering. The company has built a strong reputation for excellence in complex projects, demonstrating capabilities in challenging geographical or environmental locations, including Antarctica, where it delivered cladding installation works and steel erection for the British Antarctic Survey’s Discovery Building.

AJ Engineering is an ISO 9001, 14001 and 45001 accredited business and is certified by the Steel Construction Certification Scheme (SCCS) to provide fabricated structural steel and aluminium up to and including Execution Class 4 CE standard.

The company has been a trusted supplier for Scottish Water for more than 20 years, with other water sector clients including ESD, MWH Treatment and JN Bentley. In other sectors, clients include Morgan Sindall, Balfour Beatty, BAM Nuttall, SSE, Siemens and Corrie Construction.

Services include bridges and structures, steelwork and cladding, energy transmission, site services, CNC machining, water and wastewater. Recent projects have included the construction of a hangar building for SaxaVord at the UK Space Port in Unst, Shetland; membrane support steelwork at Bolton Wastewater Treatment Works; and steel and cladding for the water treatment building at Witches Oak Water Treatment Works in Derbyshire.

From L – R: Harry Walker, Matilda Parker-Allotey, Ryan Shields, Fahim Kassam, Zain Mahmood, Gurpreet Poonia, Daniel Chouciño, Shaf Bheda, and Ishan Sharda

Current AJ Engineering and NEWCo Managing Director Alan James, who will be handing the reins to new Group Managing Director Graham Alexander, commented, “We at AJ Engineering and NEWCo are proud of the work we have delivered and the longstanding client relationships we have developed. This has seen the businesses earn significant repeat business, something I have focused on with clients since I established AJ Engineering in 1999. Joining RSK will allow us to continue to further develop the businesses across new markets and support our international growth ambitions”.

TESTIMONIAL: Alan James, Managing Director of AJ Engineering

“Harry, Fahim and Dow Schofield Watts came on ‘the journey’ with us, working as an integral part of my team. They understood my goals, developed a suitable strategy for the sale of the business, used their expertise in the engineering and industrials sector to identify a strong list of potential acquirers, and ultimately negotiated, project-managed and secured an excellent outcome. I was impressed by their tenacity, empathy and expertise at all stages of the deal and would happily recommend them to fellow entrepreneurs considering their exit options”.

RSK Group Chief Executive Officer Alan Ryder said, “AJ Engineering and NEWCo have built up a strong reputation after successfully and consistently delivering a pipeline of content over the years across the UK, and in Scotland in particular. This acquisition not only allows RSK to add further depth to its engineering skills but also supports our continuing growth across Scotland and the range of sectors where the group and AJ Engineering, and NEWCo all have significant experience”.

RSK continues to deliver its ambitious growth strategy. It now comprises more than 200 companies and employs over 15,000 people. The group’s annual turnover at the end of FY24 was £1.9 billion.

The corporate finance team at Dow Schofield Watts in the Midlands, led by Harry Walker and Fahim Kassam, advised the shareholders of AJ Engineering and NEWCO on the sale to RSK, alongside a legal team from Stronachs’ Aberdeen office led by Ross Gardner. RSK was advised by a team from DWF’s Manchester office, led by Jonathan Robinson, alongside RSM, which provided financial due diligence services.

Commenting on the deal, Harry Walker said, “From the outset, it was clear that there was a strong cultural alignment between the two organisations and that RSK’s commitment to excellence and technical expertise made it a strong new owner to take on the ownership baton from Alan. We look forward to seeing both teams thrive as they move forward together”.

Further commenting, Fahim Kassam added, “Working with Alan James, Graham Alexander and the team to prepare the business for sale and identify its best new home has been a pleasure, and we wish all parties all the best for a prosperous shared future. We’re also pleased that the deal further demonstrates our expertise in the Industrials sector within DSW’s Midlands office”.

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