Private equity firm drives UK growth with investment car in arts firm

Manchester-based private equity firm Ardenton Capital Corporation has invested in Birmingham’s Shaftec Automotive, its third investment in the West Midlands.

Shaftec has been supplying remanufactured and new parts to the motor trade for more than 20 years, establishing itself as the leading transmission, steering and braking supplier to the UK aftermarket.

The business has a headcount of 130, operating from its 42,000 sq ft facility where it manufactures and distributes products across the UK and Europe.

Ardenton has been active in the West Midlands since the Canadian-headquartered investor established its first overseas office in the UK in early 2017.

Led by dealmakers Iain Marlow and Michael Bradbury, the UK team’s previous West Midlands acquisitions include Corbetts the Galvanizers in Telford, and PP Control & Automation based in Walsall.

Iain Marlow, director of Ardenton UK, who led the deal supported by James Worrall and Jonny Nixon, said: “We seek to partner with exceptional management teams who demonstrate a clear passion for their businesses and are committed to long-term and sustainable growth. Shaftec Automotive is a true market leader and its success to date is a testament to the operational excellence and dedication of its management team.”

Shaftec managing director, Rob Jones, who founded the business 20 years ago after following his father’s footsteps into the industry, said: “At Shaftec we have always strived to improve the quality of service and product delivery we provide to our customers. The business has grown revenue by more than 50% over the last three years because of the strength of the team we’ve been able to build and we look forward to working alongside Ardenton to continue that growth.”

Working capital and senior debt facilities were provided by PNC Business Credit UK, led by Mark Shackleton and supported by Clare Hagon.

The BDO Birmingham team led by Graham Elsworth and Robert Slater carried out the financial due diligence. Commercial due diligence was led by David McClelland of Carlton Strategy Advisors.

Pinsent Masons – Kieran Toal, Tim Fearn, James Skivington and Racheal McGurgan – provided legal advice to Ardenton.

The vendors were advised by the West Midlands team of Clearwater International, Rob Britton and Mark Gillingham.

The vendor’s legal team was led by Nick Taylor and John Heaton of Higgs and Sons.

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