The Ethikos Group completes Gilks acquisition following a seven-figure loan from the Development Bank of Wales
The Ethikos Group, a Deeside-based acquirer of engineering businesses, has completed the purchase of electrical and mechanical engineering company Gilks. The acquisition is the latest move in an ambitious growth strategy following its acquisition of Delta Rock Group in 2017. The latest stage of growth was part-funded with a seven-figure loan from the Development Bank of Wales.
Founded in 2017, the Ethikos Group’s aim is to change the perception of engineering to create an attractive, ethical engineering sector in order to attract the engineers of tomorrow.
With over 50 years combined experience in engineering contracting Scott and Gail Davis are building a company which supports engineers and invests in their future. There is a strong focus on apprenticeships and continuing professional development from within each of its group companies.
“Within each of our group operating companies we currently take on two apprentices each year, we’re looking to substantially increase our apprenticeship scheme as the Ethikos Group grows,” explained CEO Scott Davis.
“Engineering is a huge and diverse sector, we’re looking to bring pride and accessibility to our profession. I love nothing more than to take on an apprentice or an existing employee and help support them to grow through their career.”
Scott began his career as an apprentice working for British Steel before working across different engineering sectors as an electrical and automation engineer and later as a director of a successful automation company.
Gail has a wealth of experience in the administration and finance functions of engineering contracting businesses having spent over twenty-four years within the industry before starting the Ethikos Group.
They are looking to expand through acquisition, identifying complementary engineering companies and buying them as they expand.
Rhodri Evans, Deputy Fund Manager at the Development Bank of Wales said: “Scott and Gail have clearly spent a lot of time looking for the correct acquisition targets and have put a detailed integration plan in place. They have a clear vision and ambitious growth plan for the company. As Group CEO, Scott is an impressive, focused and capable individual and we are pleased to be presented with this opportunity to fund the next stage of the overall Ethikos Group strategy of building a group of complimentary engineering businesses.”
Scott added: “One of the reasons for us deciding to partner with the Development Bank was their enthusiasm for our vision. We wanted to work with a finance partner who is with us for the long term, not just one acquisition. It was clear that Development Bank shared our ambition for the Ethikos Group.”
As part of the funding process, the Development Bank introduced a new non-executive director (NED) to the company.
Adrian Gare has over 20 years’ experience in mergers and acquisitions (M&A) and corporate finance, he sits on a number of boards as an NED and finance director, as well as the holding the role of M&A Director of Instem PLC.
Adrian said: “I am delighted to be joining the board of the Ethikos Group and working alongside Scott and the team. I am looking forward to helping deliver their growth ambitions through both organic and acquisitive growth.”
Funding for the deal came from the Wales Business Fund which is part-funded by the ERDF through the Welsh Government. It was created specifically to support businesses with fewer than 250 employees based in Wales and those willing to move to Wales.
The Development Bank of Wales has a range of funds available for start-up and business growth, as well as succession and acquisition.