By Carl Swansbury, Partner and Head of Corporate Finance at RG Corporate Finance (RGCF)
The UK has long been a sought-after destination for international investors, but in recent years, there has been a noticeable increase in acquisitions and investments by American companies, particularly in the North East of England.
This trend is driven by a combination of economic factors, sector-specific expertise, and strong transatlantic relationships, all of which are making UK businesses attractive to US buyers.
At RGCF, we have been highly active in advising North East businesses on transactions involving US acquirers and investors, helping companies navigate these opportunities and secure strategic partnerships that enable them to scale internationally.
One of the key drivers behind this trend is the relative strength of the US dollar against the pound. The exchange rate dynamic has made UK businesses more affordable to American buyers and investors, effectively increasing their buying power. However, this is just one part of the story.
UK businesses, especially those in the North East, are globally recognised for their innovation, technical expertise, and specialist capabilities in industries such as renewable energy, technology, and advanced manufacturing. Many American conglomerates and PE firms see UK acquisitions and investments as an opportunity to gain a foothold in European markets while also leveraging the strong R&D and talent base that exists here.
For example, the recent acquisition of North East-based Banks Renewables, now OnPath Energy, by US investment group Onyx has paved the way for a multi-billion-pound commitment to the UK renewables sector. This investment will support significant expansion, reinforcing the North East’s reputation as a leader in clean energy.
Similarly, RGCF advised the owners of UK-based Rezatec, a business specialising in AI-driven geospatial data analytics, in its acquisition by listed Constellation Software. This demonstrates the appeal of UK tech firms to overseas trade buyers and investors, who are actively seeking to acquire businesses with cutting-edge capabilities in AI, data analytics, and software development.
While American companies are acquiring UK firms to gain access to expertise and innovation, it is not a one-way street. Many UK businesses are finding success in the US market as a result of these partnerships.
North East-based Alexander Battery Technologies (ATEL), for example, which RGCF advised on the MBO of in 2019, has reported strong growth following its expansion in the US market, helping to drive its ambitions of reaching a £100m revenue milestone. This highlights the reciprocal benefits of transatlantic investment, UK businesses gain access to a vast customer base and funding opportunities, while US firms benefit from the UK’s technical excellence.
Looking ahead, we expect to see continued interest from US buyers and investors in North East businesses, particularly in sectors such as renewable energy, advanced manufacturing, and technology. The appetite for high-quality UK assets remains strong, and as economic conditions evolve, the UK’s stable regulatory environment and skilled workforce will continue to be major draws for US acquirers and investors.
For business owners in the North East considering securing investment, a sale or looking to make acquisitions, the increasing involvement of US buyers presents an exciting prospect. At RGCF, we remain committed to helping businesses navigate these transactions, ensuring they maximise value and position themselves for long-term success in a global market.