Worcestershire fuel and emission components company Fuel Parts UK has completed a multi million pound management buy out.
A team led by managing director Andrew West has bought the Bromsgrove company for an undisclosed sum.
It acquired the firm, which employs 65 people, after securing a funding package from GE Commercial Finance's Business Finance Unit in Birmingham.
Fuel Parts UK was established 22 years ago by out-going owner Paul Tomlinson.
The firm's principle lines of business involve distributing engine management electrical parts for sophisticated vehicle engines.
The financing provided by Business Finance comprised a confidential invoice discounting facility and a revolving line against stock.
The deal will release working capital and enable the new management to expand and grow the company.
The team includes sales director John Lord and purchasing director Neil Morgan.
Sales are on course to be £11.5 million this year at the firm which sources components for all marques and supplies them into the after market.
Mr West said: "Our plan is to carry on with more of the same. We have enjoyed a 20 per cent growth in sales this year, and we believe we can grow within the market place.
"There are more sensors on cars these days and more vehicles with emissions controls, so we believe there is space in the market for us to grow further.
"Going forward, we may also launch new products in the electronics sector for vehicles. Our job is to provide a one stop shop for sensors for catalytic converters and all the engine management sensors.
"The value of a car's electronics is estimated to be around 40 per cent by 2010, so we expect there to be more scope for our products.
"This takeover will give us working capital to invest in the product range. It will also enable us to hold larger stocks.
"Our products are all distress purchasers - the customer wants them tomorrow - so we will be able to increase our inventory."
Fuel Parts assembles some of its products, but sources many of its components from the Midlands and other parts of the UK.
Mr West added: "We have a clear vision for the future of the business.
"As one of the leading providers of automotive parts, there is considerable business potential to continue expanding - particularly with developments in fuel injection engines - and we hope to build on this opportunity.
"We chose GE ahead of other finance providers because of their proven track record of funding MBOs which ensured our transition went smoothly both during and post-MBO."
Guy Walsh, regional director, GE Commercial Finance, Business Finance, said: "Fuel Parts UK is an established company with great leadership from Andy West and a highly technical and qualified workforce. It is a nice, established business which is growing. They have some good products in an expanding market. It is nice it is staying local, and with the buy out from Andrew provides greater continuity.
"We are delighted to have provided the funding for this transaction and look forward to seeing the business grow in the future."
The deal is one of 33 supported by GE in the Midlands over the last 18 months, with sums advanced ranging from £500,000 to £10 million.
Some of the money has been used for management buy-ins, management buy-outs, transactional finance and refinancing.
Mr Walsh said: "There has been lots of interest, especially from owners who don't want to leave their businesses to members of their family who have gone off to do other things.
"The owner manager is reluctant to sell to someone completely different or see the business being broken up, so the funding we provide enables them to have continuity and sell to people they have worked with."