Automotive supplier finds colourful solution to investment plans
DEMAND from its customers in the automotive sector has prompted a Birmingham-based supplier to track down growth investment.
Paintbox Group supplies advanced painting and finishing solutions to luxury car makers such as Bentley, Aston Martin and Jaguar Land Rover. It was originally founded in 1989 to service the Formula 1 sector.
Paintbox operates three robotic and four manual paint production lines across its manufacturing sites in Birmingham and Banbury, which between them employ more than 300 people. The company has an annual turnover close to £50m.
It has now secured a significant investment from Birmingham-based BGF (Business Growth Fund), which together with a c. £3m facility from Barclays will enable the development of a fourth robotic paint line at the Birmingham site.
This is expected to be operational in late 2016, with the increased capacity being installed to meet the growing demand.
Co-founders managing director James Sharp, and non-executive director Karl Durham have appointed Gordon Clark as chairman following an introduction made by BGF.
Mr Clark is very experienced in the automotive engineering sector following executive roles at Lucas, Valeo and Allibert. He will provide Paintbox’s management team with support on production workflow and operational efficiencies in the factories.
Mr Sharp said: “By continually investing in the growth of the business, we have been able to adapt and respond to the needs of our customers. Our focus on flexibility and technical excellence has put us in a strong position to increase the capacity and capabilities at our sites even further.
“The funding from BGF allows us to accelerate our growth plans while retaining control of the business.”
Tim Whittard, an Investor at BGF who now sits on the board of Paintbox, said: “Paintbox is the only business of its type, scale and competence in the UK, and is led by an incredibly talented and ambitious management team. We are delighted to be funding the building of the new production line in Birmingham, and to be supporting the longer term growth strategy of the business.”
The investment is the second made by BGF in the region’s automotive sector this year, following the finance package awarded to Coleshill-based Sertec Group.
The investment in Paintbox was led for BGF by Tim Whittard and Aaron Baker.
Paintbox Group was advised on the deal by law firm Gateley, while BGF was advised by Pinsent Masons and Claritas Tax.
