Spire Solicitors LLP (“Spire”) has advised the shareholders on the successful completion of the sale of N E Engineering Ltd (“NE”), a precision engineering company specialising in CNC milling and turning of small and complex components for demanding environments, to Karnell Group AB (publ) (“Karnell”).
NE’s main customers operate in subsea telecom, niche automotive, energy, and food processing. Through its technical know-how and flexible approach, NE has been a reliable partner to its largest customers for many years. While the majority of turnover is in the UK, many end products are exported internationally. NE will become part of Karnell’s Niche Production business area, contributing positively to the Karnell group.
Karnell has acquired 90.1% of the shares in NE, with an option to acquire the remaining shares. Additionally, Karnell has committed to a performance-based earnout contingent on NE’s performance in 2024 and 2025. Neil Ellis and Daniel Clements will retain 9.9% of the shares and continue in their current roles.
Abi Milliken, Associate at Spire who led the transaction said: “It was a pleasure to work with Daniel and Neil and we are pleased to have supported them throughout the transaction. A great outcome for all parties and we are excited to see the collaboration and continued growth of NE with Karnell. We wish them every success in the future.”
Abi was supported by the wider Corporate Team, including Hugo Persad a paralegal in the Team and Matt Downing, partner and head of the Corporate Team. Roger Margand a partner in the Commercial Property Team advised on the Commercial Property aspects, supported by Jasmine Gay, a trainee in the Team at the time. Zach Spelman a solicitor in the Corporate Team also supported on the employment aspects.
Daniel Clements and Neil Ellis, shareholders of NE, commenting on the transaction and working with Spire:
“We look forward to developing NE through the new collaboration with Karnell. They have shown a strong understanding of our business and share our vision for growth. Karnell’s experience in the field within the group will be invaluable to us.”
“Abi and the team at Spire provided exceptional support during our business sale. Their expertise and attention to detail ensured everything went smoothly and their timely and clear communication kept us informed every step of the way. We always felt confident with them by our side.”
The transaction highlights Spire Solicitors LLP’s commitment to supporting local businesses through complex and transformative deals. Our experienced team provided comprehensive legal advice and guidance throughout the process, ensuring a smooth and successful transaction for all parties involved.
For more information on this transaction or to discuss how Spire Solicitors LLP can assist with your legal needs, please visit www.spiresolicitors.co.uk.
About Spire Solicitors LLP
Spire Solicitors LLP is a leading law firm offering a wide range of legal services across various sectors. Our team of experienced solicitors is dedicated to delivering expert legal advice and representation, ensuring the best outcomes for our clients.
About NE Engineering Ltd
NE Engineering Ltd is a precision engineering company known for its high-quality CNC milling and turning services for small and complex components. Founded in 2009 and based in Norwich, Norfolk, NE has sales of approximately GBP 5 million with strong profitability.
About Karnell Group AB (publ)
Karnell Group AB (publ) is a growth-oriented industrial technology group that acquires and develops small and medium-sized product companies and niche-producing companies through a systematic and proactive acquisition strategy. With an eternal ownership horizon and decentralized decision-making model, Karnell provides entrepreneurs and family-owned businesses with a long-term and responsible partner. The company’s business concept is to identify and acquire companies with an attractive financial profile and develop these businesses by leveraging the group’s tools and expertise. The group consists of 14 companies in Sweden, Finland, and the United Kingdom. Karnell is listed on Nasdaq Stockholm.
