UK manufacturer Sertec closes £20m growth capital
Deals marks the Business Growth Fund's single largest investment in the automotive industry to date
Sertec, one of the UK’s largest independent manufacturers of stamping and welded assemblies, is set to drive growth with £20m funding from the Business Growth Fund (BGF) and Lloyds Bank Commercial Banking.
Established 54 years ago, Sertec produces over three million aluminium and steel parts per week from five operating sites across the Birmingham area; which it then supplies to automotive companies such as Jaguar Land Rover (JLR).
The manufacturing company says it has enjoyed “significant growth” of late with revenues up from £40m in 2008 to £200m.
It will use the investment, which follows £20m funding from Lloyds in August 2015, to support the launch of its new press shop at its Coleshill factory and to help JLR roll-out its new vehicles such as the Discover Sport, Jaguar XE, Jaguar F-Pace, and the convertible version of the Range Rover Evoque.
Following the deal, the founders of the company (the Mosedale’s) will be retiring from the company leaving Grant Adams as CEO and Dave Steggles as managing director.
Adams explained what the deal means for the business: “Bringing the BGF on board compliments the strong partnership we have enjoyed with Lloyds Bank for over 50 years and allows us additional flexibility for our ambitious growth plans. The combination provides a well balanced source of support and funding, both now and in the future.
“Whilst we share important plans with JLR, we must also expand our customer base and extend our geographical reach into Europe. It is testament to our potential that this is BGF’s largest single investment in the automotive industry to date.”
Ian Downing, who led the investment for the BGF, added:
“Sertec is an established and highly regarded Midlands-based business. We are delighted to be supporting the company as it moves to its next stage of growth.”