Buyout at Wigan power firm marks new chapter
22nd November 2019, 10:39 am
A leading power solutions business in the North West has completed an MBO with support from Yorkshire Bank, securing the company’s future and setting the stage for its expansion.
PE Systems Limited, based in Wigan, used a lending package from the Bank to fund the buyout, which sees the business’ previous directors, Mike and June Smith, exiting and handing control to a team of four staff with over 80 years combined experience at the firm – Nicola Jones, Managing Director; Anouska Gee, Financial Director; Julie Nuttal, Production Director and Mark Wilson, Sales Director.
Yorkshire Bank also provided working capital facilities to help the firm invest in new business systems, improving efficiency, and in a product development programme to meet the demands of its growing customer base.
The firm has taken on two new staff in its sales and assembly teams as a result of the transaction, with plans to add more in its quality / Health & Safety department, as part of a goal to acquire an ISO45001 accreditation (the industry gold standard) by the end of 2020.
Established in 1987, PE Systems is a key provider of bespoke energy solutions to some of the UK’s largest blue-chip firms, including Siemens and Balfour Beatty, mainly in the form of battery standby systems for power-critical infrastructure.
The company employs 56 full-time staff across roles including production / shop floor, electronic and software engineers and a back office support team including commercial sales and Health & Safety.
Nicola Jones, Managing Director at PE Systems, said: “The MBO has allowed us to secure our future and the legacy of Mike and June, giving us fresh confidence to push ahead with our exciting growth strategy. We’ve already started to invest in the next generation of control and instrumentation systems for our full range of products. This will make us more efficient and profitable and we’re looking forward to what comes next.
“We’re glad we made the switch to Yorkshire Bank this year, as their reputation for providing cash flow lending is well known. They were instrumental on the deal and recognised our strong track record, also seeing the value in our unique skills mix – this made them an obvious choice as a banking partner.”
Mark Preston, Director, SME Cashflow Finance at Clydesdale and Yorkshire Bank, commented: “It was a privilege for our team to be chosen to provide PE Systems with funding at such an important time in the business’ lifecycle.
“The buyout will be a game-changer for the business, and the working capital we’ve given the management team will be used to fund their growth plans and invest in their people and systems to help the firm stay at the cutting edge of their industry.”
Yorkshire Bank’s team took legal advice on the transaction from Jonathan Edwards and Melanie Chisnall at Browne Jacobson.
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