Firm’s new start as it moves as well

Jan 14 2009 by Henryk Zientek, Huddersfield Daily Examiner

A FIRM making electronic motor control equipment is moving after being bought by its chief executive.

Controlled Speed, of Brighouse, which has annual sales of £3m, has been acquired by Phil Burns for an undisclosed seven-figure sum.

The deal – backed by the Co-op Bank and cash provider Partnership Investment Finance – also means the firm and its 36 employees will be able to move to larger premises at Batley.

Controlled Speed was formed in 1984. It supplies some of the world's leading makers of mobility products with motor controls and assemblies used in domestic stair and bath lifts and scooters.

It also has a rapidly expanding contract electronics manufacturing division, which produces electronic assemblies for a variety of industries.

Mr Burns has taken majority control of the company after buying out his 50% business partner and commercial director, Mike Fitzgerald, in a cash deal structured by BTG McInnes Corporate Finance.

Mr Burns and Mr Fitzgerald took control of the firm in a management buy-in deal in July, 2000. Since then the business has doubled in size to become a market leader.

Said Mr Burns: “This is a great business with a terrific workforce that we have been able to grow over the past eight years.

“The new funding gives us a fantastic platform to take the company to the next stage.

“We have grown significantly in the last few years, but it was becoming increasingly challenging for us to cope with the demand as we had reached capacity in our Brighouse plant.

“We knew that we needed to make significant investment to take advantage of the opportunities presented to us.

“This deal, coupled with the relocation to larger premises, marks a whole new chapter for us and will allow us to fulfil our potential.”

Controlled Speed employs 36 staff, including highly skilled design and assembly experts. They will now move to a new, purpose-built 15,000sq ft manufacturing facility in Batley.

The new facility will be fully operational by April and will allow the business to expand with management planning to increase turnover and the workforce over the coming 12 months.

The board of Controlled Speed is strengthened by the appointment of local businessmen David Gravells as chairman, Luke Bigham as technical director and Jim Whittaker, of BTG McInnes, who advised on the structure of the deal.

The buy-out and move have been paid for by a package of money from the Co-op Bank and PIF.

Sonia Algjita, of BTG McInnes, said: “This business is a Yorkshire success story and the backing from the Co-op Bank and PIF is proof that, despite the general climate, there are still good deals to be done for quality businesses.

“The increased production capacity is the catalyst the business needed and once the firm has relocated it will be able to accelerate its growth.”

A Co-op Bank spokesman said: “Despite the uncertain economic climate the bank is still very much open for business and is keen to work with and fund companies with sound business strategies.’’

Duncan Gray, of PIF, said: “We are delighted to be backing a quality management team and providing funding and support to help them take advantage of the opportunities available.”