Member News
GT Group, one of the North East’s best-known engineering and manufacturing businesses, has returned to regional ownership following a management buy-out (MBO) supported by Newcastle-based RG Corporate Finance (RGCF).
The Peterlee-headquartered company, a major manufacturer and supplier of engine air and engine emission control systems to international commercial vehicle OEM’s (Original Equipment Manufacturers), has been acquired from private equity firm Rcapital by the incumbent management team, comprising Managing Director Steve Wright, Finance Director Ian Black, HR Director Kelly Kean and Commercial & Technical Sales Director Dean Machnicki.
Funding for the transaction has been provided by Cynergy Bank, via a range of facilities.
Founded in the 1970s by North East businessman Geoff Turnbull, GT Group has grown to become a leading supplier of engine air valve systems for medium-and heavy-duty commercial vehicles and off-highway equipment. Its customer base includes global manufacturers such as Daimler, Volvo, Scania, JCB, MAN and John Deere, among others.
The company employs more than 180 people across its extensive Peterlee facility and has developed additional manufacturing capability overseas in India which supports its international export programmes, driving strong profitability and revenues of over £40 million.
The business was sold to Germany-based Knorr-Bremse in 2016 when Geoff Turnbull retired. However, following a strategic review of, among other things, its product portfolio, Knorr-Bremse initiated and completed the divestment of GT Group in January 2025, with the business being acquired by private equity company Rcapital.
From this date, Rcapital has worked closely with the management team, supporting its existing strategic activities, enabling the company to very quickly, and earlier than anticipated, reach an ideal position of being ready for sale and ideally suited for an MBO, which has been a long-held aspiration of the management team.
Under the new ownership structure, the management team intends to further realise GT Group’s potential, building on opportunities presented by the industry-wide requirement to meet on-highway and off-highway engine emissions regulations across the globe.
Steve Wright, Managing Director of GT Group, said: “This is an exciting moment for everyone at GT Group, where we are returning the business to North East ownership and personally taking on the legacy of the company’s well-respected founder, Geoff Turnbull, being, entrepreneurial spirit, agility and support of the local community, that have always been part of the company’s DNA.”
“Further, we have a highly experienced and motivated team, world-class products and deep relationships with global OEM’s, and as the global industry evolves towards new emissions standards, we are exceptionally well placed to help manufacturers meet these challenges through innovation, engineering excellence and responsive customer support.”
The management team was advised by RG Corporate Finance, led by Partner and Head of Corporate Finance, Carl Swansbury, CF Partner Nick Johnson, CF Senior Manager Sam Shield, and CF Managers Benjamin Kain and Euan Mulholland.
Legal advice to the management team was provided by Mincoffs Solicitors’ Partner Christopher Hughes, Associate Solicitor Max Gilchrist and Trainee Solicitor Jenny Luke.
Rcapital was advised by Browne Jacobson’s Partner James Skivington, Partner Gavin Cummings, Senior Associate Rob Northall and Associate Solicitor Daniel Knowles.
Cynergy Bank received legal advice from Shoosmiths.
Carl Swansbury, Partner and Head of Corporate Finance at RGCF, said: “GT Group is a long standing, standout North East manufacturer with a global reputation and a long history of innovation, technical excellence and strong leadership. The management team acquiring the business has the capability, vision and commitment required to take GT Group into its next phase of growth.
“Returning the company to North East ownership is a hugely positive milestone, not only for the business itself but for the wider region. It reinforces the depth of engineering talent that exists in the North East and the crucial role regional manufacturers continue to play in helping the commercial vehicle industry achieve lower emissions.”
