A Telford-based automotive supplier has taken over a Midland rival after the latter collapsed into administration.
Morrell Products, which was established in 1992, has bought out VT Technology, which has sites in Chesterfield and Loughborough.
The deal was led by the Birmingham office of Kroll Corporate Finance, which also advised Morrell on a management buy-in six years ago. VTT was purchased from the administrator, KPMG, for an undisclosed sum.
Both Morrell and VTT are manufacturers of sound insulation and interior trim products for the automotive sector, although their clients have been mutually exclusive until now.
Morrell intends to merge its manufacturing operation with that of VTT, under the name TMat Morrell.
Managing director of the newly merged division will be Jeremy Marshall, of Kroll's automotive advisory group, who will also continue in his existing role as a director of the holding company, Morrell Products.
VTT, which until two years ago was the vehicle trim division of TMat Engineering, is an £8.5 million turnover company, and has 144 employees.
The company went into administration at the end of last year, a situation brought about principally by the loss of business worth almost £2 million from American giant Caterpillar.
Despite this loss, VTT has remained as a major supplier to virtually all of the chief manufacturers in the specialist agricultural and construction field, including Agco Massey Ferguson, Volvo, Komatsu and JCB.
Morrell, which has a turnover of £3.2 million and employs 35 staff, manufactures products for a number of luxury car makers, including Rolls-Royce and Aston Martin, but also a variety of commercial vehicle producers, including Birmingham-based LDV. It makes under bonnet sound pads and acoustic interior trim. It is hoped that the merger of the two companies will open up new markets across the world.
Mr Marshall said: "There are a great deal of synergies in the range of products made by Morrell and VTT, and customers of the newly merged company will benefit from not just a n enhanced product range but better after sales support also. In fact, we have already spoken to key customers and have been hugely encouraged by their support.
"A combination of VTT's industrial facilities and Morrell's automotive market expertise will allow TMat to take advantage of the enormous opportunities that exist in both the automotive and off-road construction/agri sector."