Auto cable firm on track to growth after investment from PHD
A family business which is the UK’s leading supplier of low-voltage cables to the automotive and marine industries has received a significant investment from PHD Equity Partners to drive its growth.
Auto Marine Cables (AMC) employs 76 staff at its premises in Worsley, near Manchester, and manufactures almost all of its own cables on site.
The £14m-turnover company is unrivalled in its ability to deliver on orders within short lead times and is one of the few which can offer cables ranging from under 5m to more than 6km long.
The funding will allow AMC to boost its growth by expanding its product range and its export trade, and enable the current owners, Peter and Diane Hammond, to realise part of their investment in the business.
AMC’s origins date back to 1964 when Peter’s father, Howard Hammond, set up Kar-Bar, a car accessories shop in Bolton which was soon a chain of 10 stores.
The business later expanded into the marine market and started to manufacture its own cables. It has continued to seek ways to improve efficiency, develop new products and improve customer service and remains the only UK manufacturer of low-voltage cables.
Peter Hammond, who has led the business since 1999, will stay on as managing director, working alongside the PHD team to support its growth.
Craig Richardson and Philip Price led the investment on behalf of PHD Equity Partners, which is the private equity arm of Daresbury-based Dow Schofield Watts.
Craig said: “With its reputation for quality, its agile approach and its ability to make ‘just in time’ deliveries, AMC has a strong competitive advantage within the industry and is an integral part of the supply chain for many of its customers.
“The company has the potential to deliver turnover of over £20m on the basis of its current facilities alone, and offers opportunities for growth in both new and existing markets. We look forward to working with Peter and the team to take it to the next stage of its development.”
AMC is the sixth investment from PHD’s second fund and extends the firm’s industrial manufacturing portfolio, which also includes Goole-based chemicals business Technikraft and Wigan-based sealants business Hylomar.
Hill Dickinson provided legal advice to PHD Equity Partners on the deal, while Dow Schofield Watts Transaction Services provided financial due diligence. The Hammonds were advised by Rickett Mitchell and Brabners.