Peterlee’s GT Group returns to North East ownership after management buy-out
One of Peterlee’s biggest employers, GT Group, has returned to North East ownership after its management team completed a major buy-out of the long-established engineering firm.
The deal sees Managing Director Steve Wright, Finance Director Ian Black, HR Director Kelly Kean and Commercial & Technical Sales Director Dean Machnicki take control of the business, bringing the company back under local ownership for the first time since 2016.
GT Group, based on the South West Industrial Estate, employs more than 180 people in Peterlee and is a major supplier of engine air and emission control systems to commercial vehicle giants including Daimler, Volvo, Scania, JCB and John Deere.
The company turns over more than £40m and exports internationally, supported by additional manufacturing operations in India.
Steve Wright said the buy-out marks “an exciting moment for everyone at GT Group,” adding that returning the business to local hands honours the legacy of founder Geoff Turnbull.
“We’re proud to bring GT Group back to North East ownership,” he said. “We have a highly experienced and motivated team, world-class products and deep relationships with global OEMs.
As the industry shifts towards stricter emissions standards, we are exceptionally well placed to help manufacturers meet these challenges through innovation and engineering excellence.”
The company was acquired by private equity firm Rcapital earlier this year, after German group Knorr-Bremse divested the business. Rcapital’s backing helped the management team strengthen operations and prepare for the buy-out sooner than expected.
The transaction was supported by Cynergy Bank. RG Corporate Finance, based in Newcastle, advised the GT Group team throughout the process.
Carl Swansbury, Partner and Head of Corporate Finance at RGCF, said the deal is “a hugely positive milestone for the region.”
“GT Group is a standout North East manufacturer with a global reputation,” he said.
“The management team acquiring the business has the capability and ambition needed to drive its next phase of growth. Returning the company to North East ownership reinforces the depth of engineering talent in this region.”
The new owners say their focus will now be on expanding the company’s market position as demand grows for cleaner, more efficient engine technologies in both on-highway and off-highway sectors.