24th July 2020

Firm expands with deal supported by Development Bank

A Deeside-based acquirer of engineering businesses, which aims to change the perception of the sector in order to attract the engineers of tomorrow, has completed the purchase of electrical and mechanical engineering company Gilks in a deal part-funded by a seven-figure loan from the Development Bank of Wales.

Ethikos Group was founded in 2017 by Scott and Gail Davis who have more than 50 years combined experience in engineering contracting. The business has a strong focus on apprenticeships and continuing professional development from within each of its group companies.

The acquisition of Gilks is the latest move in growth strategy following its acquisition of Delta Rock Group in 2017.

“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,” said chief executive 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 Davis 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 Davis 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 part of the funding process, the Development Bank introduced a new non-executive director (NED) to the company.

Adrian Gare has more than 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.

He 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.