A Cheshire contracting firm has undergone a management buy-out, backed by a six-figure loan from the EV SME Loans fund, managed by Mercia.
Power Installations, which employs a team of 11 in Nantwich, provides specialist cable jointing services to the electricity distribution networks. The deal gives control of the business to the long-standing management team and provides an exit for one of the founders.
Power Installations serves clients ranging from housebuilders to railway authorities and energy companies such as Scottish Power and Electricity North West. The business carries out installations, upgrades and repairs to electrical power cabling and substations and is accredited to work with cabling carrying up to 33,000 volts.
The company was founded in 2009 by Paul Johnson and Jason Latham, who had both worked as engineers for national electricity providers, and whose wives Katrina and Sharon became managers in the business. In 2011 they were joined by Lee Bavington who later become operations director and whose wife Adele also joined the company.
The buy-out will allow the Lathams to step down from the business, with the other two couples acquiring their shares.
Lee Bavington, director said: "We are grateful to Mercia for their assistance and guidance to allow us to take the company forward."
Mercia is one of the few loan providers able to fund management buy-outs in small firms. Its EV SME Loans fund provides loans between £150,000 and £1 million to established and growing SMEs across the UK.
Andy Heaton, investment manager with Mercia, said, "Power Installations is a specialist firm with a skilled workforce and a strong reputation in the industry. The management team are experienced and keen to grow the business. The deal will give them full control of the company and allow them to take it forward."
Mark Jerman of Watts Commercial Finance provided fundraising advice to the management team, while Poole and Alcock provided legal advice.