Browne Jacobson aids Rcapital in exit

Browne Jacobson, a UK and Ireland law firm, has played a pivotal role in advising Rcapital on its recent sale of Nasmyth Group Limited, a specialist aerospace and defence engineering business. This acquisition has been made by Sigma Advanced Systems UK Limited, which operates as a subsidiary of India’s Megasoft Limited. The sale represents a significant development in the ongoing evolution of the UK's defence supply chain, in which Rcapital has established itself as a trusted partner.

Nasmyth Group has been a major supplier to leading global companies, including the likes of Rolls-Royce and Boeing. This positioning has made the firm a valuable asset within the burgeoning defence manufacturing sector, particularly given the critical precision engineering capabilities it offers. Browne Jacobson's corporate finance team, led by Partner Tom Saunderson and corporate finance Partner Gavin Cummings, provided expertise by combining their understanding of complex corporate transactions with specific knowledge of the aerospace and defence sectors.

Tom Saunderson remarked, “The aerospace and defence sectors stand at the forefront of society’s biggest issues, requiring specialist legal knowledge, particularly when dealing with businesses that form part of the UK's critical defence supply chain." He further elaborated, “We have significant experience in this space and understand the unique challenges these transactions present."

Nasmyth Group, headquartered in the West Midlands, employs around 500 individuals and serves several original equipment manufacturers (OEMs). Rcapital originally invested in Nasmyth Group back in 2022, stepping in when the company faced significant cashflow difficulties due to the repercussions of Covid-19 restrictions. Following substantial financial investment to stabilise and revitalise the business, Nasmyth is now on a profitable trajectory.

This exit marks Rcapital's second divestment within the aerospace and defence sector in a span of just 12 months, following the sale of Trac Precision Solutions Ltd in November 2024. Rcapital continues to assert its commitment to the aerospace and defence domains. Ashley Reek, a Partner at Rcapital, stated, "Browne Jacobson’s understanding of the aerospace and defence sector, combined with its experience in handling complex corporate sales, was invaluable. The team navigated the legal complexities efficiently and helped us achieve a successful outcome that secures the future of this heritage UK business with supportive new owners in Sigma Advanced Systems.”

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