Wigan based EJA Engineering has been sold to Rockwell of the USA. Including surplus cash in the business, the deal is worth almost £50 million to the managers and backers of EJA, which was the subject of an MBO in 1996. HSBC Private Equity in Manchester led the buyout, with banking provided by Bank of Scotland. The sale process was handled by Hawkpoint and Hammond Suddard's Manchester teams. 

EJA Engineering is a world leading manufacturer of machine safety products. Employing about 180 people in Wigan, in addition to staff at subsidiaries in France, Germany and the USA. EJA has built a world wide reputation for the quality and reliability of its products, which play a crucial role in protecting the safety of machine operators and workers in hazardous environments. This is a growth market as more rigourous safety standards are adopted around the world, and is an area where Britain has been a leader.

EJA was founded in 1976 as a distributor of electrical products, but quickly moved into manufacturing safety switches, relays, and machine guards. By 1996 two of the original founders sought to retire and realise their investment in the business. This was achieved by a management buy-out, led by John Oliver and backed by HSBC Private Equity. £31 million was raised at the time, including funds for expansion. Since the buyout the business has continued to grow, including the acquisition of a small manufacturer in the US in 1998. EJA will now become part of Rockwell International Inc, itself a global leader in automation, which is understood to have ambitious plans for the business.

Phil Goodwin of HSBC Private Equity commented: "I am obviously delighted with this result, which represents an excellent return on our investment, but is also a super development for the business. Rockwell is a first class company who will build on and develop the company for the future. In many ways this has been a classic buy-out. John Oliver and his team have grown the company at the same time as paying off buyout debt, and collectively we have sold the business to a good home. A textbook case!"

Hawkpoint's Claire Holditch, who advised the shareholders on the sale commented: "We originally planned to float E J A but with sentiment towards smaller companies becoming so negative a sale became a more attractive option, particularly when a world class business like Rockwell was knocking hard on the door."