PP Control & Automation is targeting turnover of £40m within five years after receiving a major investment deal.
The Cheslyn Hay-based company, which employs more than 230 people, has been backed by new funding from Ardenton Capital Corporation, which now owns a majority stake in the business.
The deal has seen Tony Hague, current PP managing director, become a significant shareholder in the business as well as assuming the new role of Chief Executive Officer.
David Fox, who founded the firm, will continue his association with the business by stepping up to the role of chairman.
The funding injection comes just weeks after the company announced a string of new contracts to take its turnover for the coming year to £24m, including exciting first orders for Hedinn in Iceland and new projects for customers in digital printing and the scientific industries.
Mr Hague, who has been with the firm since 2001, said: “We recognised over 12 months ago that if we were to realise our aspirations of truly growing PP in the way we believed possible, we would need a new business partner to work with.
“Sales have increased nearly 30% in the last two years, but to take us to £40m and beyond we needed to partner with a long-term investor to really accelerate the growth. There were many organisations keen to invest in PP.
“However, we knew from the very first meeting with Ardenton Capital that its differentiated approach to sustained investment, with no intention to divest, perfectly aligned itself to the way we do business and will ensure we deliver on our ambitious expansion plans.”
He said the terms agreed with Ardenton provided stability for customers and security for employees, whilst also giving the firm a sound platform upon which to invest and extend its manufacturing capabilities to even more global customers.
Canada-based Ardenton is a private corporate investor which unlike traditional private equity funds, invests with no intention to divest.
Directors Iain Marlow and Mark Bradbury opened the firm’s UK office in Manchester in 2016 and made their first investment into Telford-based Corbetts the Galvanizers the year after.
Ardenton targets majority investments in businesses alongside incumbent management teams, which it seeks to support in delivering long-term sustainable growth.
Mr Marlow said: “PP Control & Automation is a great example of a world class UK manufacturer exporting its services and products all over the globe.
“We are exceptionally proud to have the opportunity to partner with Tony Hague and his management team to help take the business into its next phase of growth and ensure the business continues to be a leading light of West Midlands industry.”
The deal was supported by Ian Mansell, Ian Howey and Sunil Prabhakar of Clydesdale Yorkshire Bank in Birmingham.
PP Control & Automation, which turned 50 years-old in September 2017, is a Made in the Midlands member and also one of the constituents of the Midlands Assembly Network (MAN). The deal will not affect its role within the alliance.
Pictured from left: Allan Dunn, Ardenton UK, David Fox and Tony Hague, both PP Control & Automation, and Iain Marlow, also Ardenton UK.