Partnership Investment Finance

PIF supports management buyout of Controlled Speed

Leading manufacturer of electric motor control products Controlled Speed has been bought by managing director Phil Burns for an undisclosed seven figure sum in a deal backed by The Co-operative Bank and Partnership Investment Finance (PIF).

The Brighouse-based company, which turns over £3m, was established in 1984 and makes bespoke electronic assemblies, supplying many of the world's leading manufacturers of mobility products, stair lifts and industrial equipment.

Phil Burns will own majority control of the company after buying out his 50 per cent business partner in a cash deal structured by BTG McInnes Corporate Finance.  The company will use the funds to finance a move into new premises in Batley.

“We have grown significantly in the last few years but it was becoming increasingly challenging for us to cope with the demand due to the limited space available to us.  We knew that we needed to make a significant investment to expand.   This deal, coupled with a move to larger premises nearby, marks a whole new chapter for us, and will allow us to fulfil our potential.”

Controlled Speed employs 36 staff including highly skilled design and assembly experts.  It had reached its production capacity at its Brighouse base and will relocate to a new, purpose-built 15,000 sq ft manufacturing facility in Batley.   The new facility will be fully operational by April this year and will allow the business to expand with management planning to grow turnover and the workforce over the coming 12 months.
The Board of Controlled Speed is strengthened by the appointment of local business figure David Gravells as Chairman.  Technical Director Luke Bigham and Jim Whittaker from BTG McInnes also join the Board.

The MBO and the relocation have been funded by a package of finance from The Co-operative Bank and Partnership Investment Finance.  The Co-operative Bank, whose team was led by Jeff Fryer, provided senior debt and working capital facilities and PIF, led by Duncan Gray, provided equity and mezzanine funding.

“Controlled Speed is a Yorkshire-based business designing and manufacturing world-class, innovative electronics for a global market.  We are delighted to be backing a quality management team and providing funding and support to help them take full advantage of the opportunities available to them,” said PIF Investment Manager Duncan Gray.

PIF is an investment fund aimed at supporting growing businesses in Yorkshire and the Humber. It aims to encourage enterprise and economic regeneration by providing equity investments and loans to eligible businesses in the region’s Objective 2 areas and has £7m worth of funds to invest before the end of 2008.

“Controlled Speed is a great manufacturing success story, and the backing from the Co-op and PIF is proof that, despite the general climate, there are still good deals to be done for quality businesses.  The increased production capacity is the catalyst the business needed and once the firm has relocated it will be able to accelerate its growth,” said Sonia Alghita of BTG McInnes who advised management on the deal.