Commercial vehicle MBO launches £60m Midlands growth fund
A LARGE-SCALE investment in a commercial vehicle parts manufacturer has marked the launch of a new £60m Midlands-based fund set up to drive growth in the UK’s industrial sectors.
The deal, the terms of which have not been disclosed, enabled a management buyout of Cambridgeshire-based SB Components.
The firm will now benefit from the support of experienced entrepreneurs and founders of the £60m Elaghmore I Fund, David Manning, Andy Ducker and Greg Koral, who will each join the firm’s board.
SB Components has almost 30 years’ experience in the production and delivery of vehicle parts for its clients, who include John Lewis, DHL, Tesco and TNT. The business currently employs more than 130 staff at its base in Wisbech and has an annual turnover of £15m.
Andy Ducker, Elaghmore Partners and co-founder of the Elaghmore I Fund, said: “We launched our first fund as a result of considerable institutional interest and were pleased to exceed our expectations to be able to close the fund at £60m, including a significant financial commitment from ourselves as partners.
“We have a clear and defined strategy of aiming to grow and support UK-based industrial businesses and our recent support of SB Components is testament to this. Our extensive experience enables us to not only look at turnaround situations, but to also support management teams in delivering growth strategies for businesses both on a domestic level and internationally. The Elaghmore team will now focus on its investment in SB Components and exploring new opportunities for the fund.”
The corporate team at the Birmingham office of Mills & Reeve advised on the deal.
Peter McLintock, corporate partner at Mills & Reeve, said: “This investment fund is a prime example of how the Midlands region is driving the manufacturing industry forward on a national scale and has had a positive and proactive response to Brexit.
“This deal has been an exciting project for us as it’s not only highlighted the greater potential of an already successful manufacturing business in SB Components, but it’s has proven the ongoing commitment from investors to the sector and its continued transformation.”
The Elaghmore Fund is available to manufacturing, engineering and industrial companies across the UK to help them grow.
