Souter Investments has backed a management buy-out of Premier Hytemp, a metals manufacturing business formerly owned by Sir David Murray.

Premier Hytemp operates in the UK, Singapore, and Malaysia and the deal is expected to close before the end of the year. Transaction terms have not been disclosed.

Sir David sold the business to its managers in 2012 in a £34.5 million deal backed by an £8m investment from the private equity house Dunedin.

Mohit Sreen, chief executive of Premier Hytemp, said: “Our strategic partnership with Souter Investments marks an exciting phase in Premier Hytemp’s journey.”

Dr Douglas Dawson, a seasoned industrialist with experience in leading global metals and manufacturing businesses, will join Premier Hytemp as non-executive chairman.

It is the latest in several industrial deals for Souter Investments, the private equity focused family investment office of Sir Brian Souter.

Dentons as legal counsel advised Souter Investments, with KPMG, Calash, ERM, Marsh McLennan, Neotas, and FWB Park Brown providing due diligence and advisory services.

Argyll Partners is acting as Souter Investments’ financial and strategic advisers. Addleshaw Goddard is management’s legal counsel with Parisi Tax and BDO providing management tax advice. Independent Growth Finance will continue to provide Premier Hytemp with asset backed facilities.