A £1m funding package has been secured by wholesaler AA Jones Electric as part of a management buyout deal at the firm.
The Venture Business Park business, which employs 20 people, has undergone a seven-figure management deal backed by investors Mercia Debt Finance. Co-founder and sales director Andy Moulds and long-standing employee Sam Lomax have taken control of the business, ahead of the retirement of co-founder Ian Wayman.
Finance director Tony Moore, another co-founder, retains his stake in the firm and will continue in his role. Meanwhile Ms Lomax has become managing director.
AA Jones Electrical began in 15 years ago and supplies electrical equipment for domestic and commercial use, as well as industrial automation and controls. In 2022 the firm acquired neighbouring Seltec Automation – a specialist in factory automation and building health and safety projects.
Directors have secured a £1m funding package for the business, half of which has come from Mercia’s SME Loans fund. The remaining £500,000 is intended to support post-buyout growth including the creation of five jobs in the next two years, and comes from Northern Powerhouse Investment Fund II-Mercia Debt Finance, which is managed by Mercia as part of the NPIF II.
Ms Lomax said: “Tony and Ian have built a very successful business with a dedicated and experienced team. Having joined the company 13 years ago, I am very grateful for all the support and opportunities they have given me. I am proud to be taking on the role of managing director and look forward to working with Andy and the team as we continue to grow the business.”
Mercia Debt’s Rebecca Pickering said: “AA Jones is well respected in the industry. It sets itself apart from the big chains by its customer service and knowledgeable staff and despite tough competition, has continued to grow revenues. We are pleased to have been able to be able to support the buy-out and provide funding for its future growth plans.”
Lizzy Upton, senior manager at the British Business Bank, said: “The future of the electrical industry is bright, with the likes of solar lighting and EV growing in popularity amongst consumers. It is great to see Yorkshire & Humber businesses like AA Jones Electrical making use of NPIF II funding to capitalise on this, supporting its future growth and supporting the Northern economy.”
Rebecca Pickering and Mike Rogers of Mercia Debt worked on the deal alongside Pierce Business Advisory and Accountancy Group of Blackburn, which provided corporate finance advice to the company, while WHN Solicitors of Bury provided legal advice.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
