Business Growth Fund backs automotive technology firm in £6m investment

AN automotive technology firm is expanding the scope of its research after securing a £6m growth capital investment in a deal advised and funded out of Birmingham.

Based in Milton Keynes, Prodrive Composites is a leading manufacturer in the high growth automotive carbon fibre composite parts and assemblies market working with leading OEMs in the UK.  Employing nearly 200 people, the company has grown from £2m turnover in 2010 and is on course to grow to more than £15m at the end of this financial year.

The investment secured through the Business Growth Fund will allow the firm to pursue its plans to invest in technologies and strengthen its presence in the marketplace.

Prodrive Composites was previously a subsidiary of Prodrive Holdings, which remains a minority shareholder post-BGF investment.

The PwC Midlands deals team has advised Prodrive Holdings on the capital investment.

Neil Sumner, Corporate Finance Director, PwC Heading up the PwC Midlands team, corporate finance director Neil Sumner (left) said: “There is a significant growth opportunity in this market over the next few years as technological advancements make the cost of carbon fibre composite more competitive with traditional materials.  

“Prodrive has developed strong relationships with leading UK automotive players and has recently secured new contracts to support its future growth.  This investment will support that growth and the company’s investment in new technologies.”

The Prodrive Group has designed and engineered some of the world’s most successful motorsport competition cars.  The group was founded by motorsport entrepreneur David Richards over 30 years ago and during this time has secured six World Rally titles, four British Touring Car championships and four Le Mans titles amongst others.   

Dominic Cartwright, managing director, Prodrive Composites, said: “This is an exciting time in the composites industry and for Prodrive Composites. Demand is growing and we are well placed to service this. As a partner in the business, BGF brings both investment and an external perspective and we are very much looking forward to being able to call on their support as we continue to grow.”

Ian Downing, investor, BGF said: “The demand for carbon fibre composites is on a clear upwards trajectory and Prodrive Composites has the legacy, ambition and customer base to really capitalise on that. We are looking forward to becoming a stakeholder in the business, alongside Prodrive Holdings.”

Wragge Lawrence Graham & Co acted as legal advisor on the deal.

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