Sertec Group Holdings, a manufacturer of stampings and welded assemblies, has secured a GBP20 million funding package from BGF (Business Growth Fund) and Lloyds Bank Commercial Banking to support the management team’s continuing expansion plans for the 54 year old business.
The Coleshill headquartered manufacturer is a key supplier partner to Jaguar Land Rover (JLR) among others, producing over three million parts per week from aluminium and steel across its five operating sites in Birmingham. The business has enjoyed significant growth over the last eight years with sales rising from GBP40 million in 2008 to close to GBP200 million today.
The new funding from BGF and Lloyds Bank will allow Sertec to accelerate their growth strategy and comes in addition to the GBP20m working capital facility provided by Lloyds Bank in August 2015.
The business invested heavily last year across all operating centres in new robotics, presses and site upgrades. This year sees the completion of a brand new GBP16m press shop at its Coleshill factory, where 13 new transfer and progression presses will be fully operational within the next 12 months.
The investment by BGF and Lloyds Bank will facilitate Sertec’s continued expansion to support JLR’s exciting development of new vehicles such as last year’s launch of Discovery Sport and Jaguar XE and this year’s arrival of Jaguar’s new crossover F-Pace and the convertible version of the record breaking Range Rover Evoque.
The deal allows for more than just investment in plant and equipment. Following the reshaping of the company which began in 2006, the founding Mosedale family will now be retiring from the business having developed a strong Executive Management team of Grant Adams (CEO), Dave Steggles (who succeeds Mr Adams as Managing Director) and Finance Director Martyn Hughes. Between them they have over 86 years experience working at Sertec and their passion in the business will ensure they continue to lead the company for many more years to come.
As part of the investment and restructuring, Mike Baunton has been appointed as Non Executive Chairman at Sertec and brings extensive industry experience through his current roles as Chairman of SMMT Industry Forum Limited (The Society of Motor Manufacturers and Traders’ Industry Forum) and of VTL Group.
Grant Adams says: “Bringing BGF on board complements 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 BGF along with Gurinder Sunner and Joanne Smith, said “Sertec is an established and highly regarded Midlands based business. The management team has successfully built a business of scale and continues to explore exciting opportunities to expand further. We are delighted to be supporting the company as it moves to its next stage of growth.”
Leading the deal for Lloyds Bank Commercial Banking were Regional Director for Strategic Finance Andy Clarke and Relationship Director Chris Pennick.
Pennick says: “Sertec has enjoyed solid growth over a number of years and we are committed to backing ambitious and experienced management teams such as this, as they accelerate the next stage of their strategy. We’re looking forward to building on our partnership with the business as it identifies further expansion opportunities, in what is a buoyant automotive industry.”
