Canadian investor buys manufacturer and backs plans to double sales
Canadian private equity firm Ardenton Capital has taken over Walsall manufacturing business PP Control & Automation.
It has ambitions to nearly double revenues at the business within five years, from its current £22.7m to £40m.
PP, which employs 230 people, provides electrical control systems, cable harnesses and sub-contract manufacturing solutions.
Ardenton has taken a majority stake in the business while managing director Tony Hague has taken a “significant” stake and will become chief executive. David Fox, who founded the business in 1967, will become chairman.
PP had spent more than a year seeking the right partner to enable it to achieve its ambitious growth plans which sees it targeting growth in the UK and overseas.
Although international sales currently account for just under 5% of the total, it doubled in the last financial year.
Hague said: “Sales have increased nearly 30% in the last two years, but to take us to £40m and beyond we needed to partner with a long-term investor to really accelerate the growth. There were many organisations keen to invest in PP.”
Ardenton is a Canadian-headquartered private corporate investor which, unlike traditional private equity funds, invests with no intention to divest.
It targets majority investments in businesses alongside incumbent management teams, who it seeks to support in delivering long-term sustainable growth.
Iain Marlow, director of Ardenton UK, based in Manchester, said: “PP Control & Automation is a great example of a world class UK manufacturer exporting its services and products all over the globe.
“We are exceptionally proud to have the opportunity to partner with Tony Hague and his management team to help take the business into its next phase of growth and ensure the business continues to be a leading light of West Midlands industry.”
Ardenton’s acquisition of PP comes weeks after it revealed deals with an Icelandic fishing business, Hedinn, and new projects for customers in digital printing and the scientific industries.
The deal was supported by Ian Mansell, Ian Howey and Sunil Prabhakar of Clydesdale and Yorkshire Bank in Birmingham.
