Why we chose to sell to Karnell

Tell us about NE Engineering and its history:

NE Engineering Ltd is a British precision engineering company specializing in turning and milling of small components. The company was founded by Neil Ellis in Norwich in 2009 and specializes in turning and milling of small components. NE has developed into a reputable precision engineering company with customers across multiple sectors (e.g. subsea telecom, niche automotive, energy, food processing). The company has experienced rapid organic growth, driven by active new customer acquisition.

Why did you choose to sell the company?

We are still hungry and young (Neil born 1983 & Daniel born in 1989) and very confident that NE will experience strong growth over the coming years. After a few years of heavy investment, we thought a larger company could provide the necessary resources to scale the business beyond the current capacity. Further, we wanted to de-risk our wealth position by taking some money out and by diversifying our personal financial situation to be less dependent on the company. With young children at home, we were also aiming to spend a bit more time with the family.

What made you choose Karnell as the new owner?

We liked Karnell’s long-term perspective and their promise to develop the company to the next phase of success. It also mattered that Karnell had acquired recently a similar business in the UK and owns a larger well-established precision engineering company in Finland and has therefore relevant industrial expertise. The long-term future of our staff was important part of our decision to sell shares in the business and the model Karnell offered was a great fit.

How has it been to work under Karnell’s ownership?

Karnell has been true to their words and supported NE Engineering’s continued growth. The production space is now three times bigger, our headcount has increased by 20% and we have invested in three new machines. Karnell gives its local companies high amount of autonomy and as long as we follow the joint business plan our day-to-day operations are exactly the same as before.

Tell us about Drivex and its history:

Drivex was founded in Edsbyn in 1969, and since 1992, we have specialized in manufacturing equipment for the machine contracting and road maintenance sectors. Today, the DRIVEX brand is a leader in the industry. The company has been operated as a family business by both the first and second generations, who have been, and still are, active in the company.

Why did you choose to sell the company?

The company has done very well, but as some of us relatives have grown older, we spent quite a long time discussing different options for the company’s future. Our most important priority was that the company would remain in the local area and that our employees would feel secure in their jobs. When Karnell contacted us, we felt that their model, with a long-term ownership horizon and an interest in developing the business here in Edsbyn, met our priorities. It gradually became clear that selling the company was the best long-term solution for both us and our employees.

What made you choose Karnell as the new owner?

Karnell is a long-term owner with the ambition to continue running the company in our spirit and under the same brand. It was also important that the new owner would continue to develop the company and eventually hire more people in Edsbyn. Additionally, Karnell proved to be very easy and professional to deal with.