A Black Country manufacturer has seen its management buyout come good with a major order from General Motors.
Husband and wife team Paul and Sandra Mulvey have acquired Complex Cold Forming from McKechnie Specialist Products, part of the Stock Market quoted Melrose group.
The business is located in Willenhall but is on the point of moving to newlyrefurbished premises in Wednesbury.
CCF is an automotive components manufacturer making valve spring retainers and plugs supplying original equipment manufacturers including Ford, GM, Caterpillar, Opel and Holdens.
The new GM order will increase annual turnover by 25 per cent from #3.2 million to over #4 million.
The Mulveys have recruited Kevin Edwards as financial director and the business has retained its 23 employees.
Mr Mulvey, sales and marketing director for three years, was appointed managing director in August last year.
He said: "It became apparent that Melrose, which has its roots in the aerospace industry, did not regard Complex Cold Forming as a core activity.
"One of the options they were prepared to consider was to sell the business."
But now with Mr Mulvey as managing director and his wife as administration director, the business is forging ahead.
They have already announced plans to invest in new equipment which will include a #1 million Formax cold heading machine and a #100,000 piece of optical sorting equipment.
Mr Mulvey said: "We have been able to buy what was an eminently viable business and put in place plans to grow the company.
"The major order from GM in the States is a tremendous boost to us and we are hopeful of winning further work from Ford in Germany."
The deal was advised by Andy Kay, corporate finance director at the Birmingham office of accountants PKF.
Funding for the MBO, for an undisclosed price, was arranged through Chris Jones at Eurosales Finance and legal advice to the MBO team was provided by Adrian Cutler and Darren Walker of Cobbetts.
David Allison of Martineau Johnson provided legal advice to Melrose and Richard Cliff at George Green advised Eurosales Finance.
Mr Kay said: "We congratulate Paul and Sandra Mulvey on the management buyout. The deal was done in a tough economic environment where cost pressures from OEMs are continuing, but this demonstrates that quality niche component businesses can not only do well but prosper and grow."