The alternative finance group, Business Growth Fund, has announced its tenth manufacturing investment by awarding £4m to VTL Group a manufacturer of precision engineered parts for the automotive industry.
Business Growth Fund provides minority equity investments in UK-based firms with high growth potential.
It will invest in any strategically-sound business with a turnover of between £5 and £100m. Its growth equity investments can range between £2m and £10m.
BGF also provides non-executive expertise and strategic guidance to its investment subjects.
At VTL Group, Michael Baunton, former interim CEO of the Society of Motor Manufacturers and Traders has been appointed as Non-Executive Chairman.
VTL manufactures precision engineered transmission and turbo components for the commercial vehicle and passenger car markets.
Key customers include Cummins, Toyota, Renault and Nissan. VTL also provides product R&D and prototyping services.
Formed in 2001, VTL has developed from a single product, single site Europe-focused business. It is now a global operation, manufacturing multiple products and employing over 400 people. It generates annual revenues in excess of £50m.
BGF’s investment will enable VTL to grow its business organically.
The current funding package and access to further growth capital will also provide the financial means to pursue acquisitions and investments in the future
VTL is headquartered in Huddersfield, where it has four manufacturing facilities and an R&D centre. VTL also has a manufacturing facility in Charleston, USA, a manufacturing facility in Dharwad, India and a sales and technical presence in Yokohama, Japan.
Commenting on the investment BGF business director, Mark Bryant, commented: “BGF has invested in a number of exciting manufacturing businesses to date and it is fantastic to be able to welcome VTL into this group.
“Automotive manufacturing has seen impressive growth over the last 16 months with 1.6 million cars now being built and the UK has again become a net exporter of cars for the first time since the seventies,” Mr Bryant continued. “Add to this the opportunity to produce a further £3 billion tier 1 and £6 billion tier 2 to tier 4 components within the UK supply chain, the potential for growth is very clear for ambitious companies.”
VTL’S CEO Bruno Jouan, said the investment would help accelerate further international growth for the company. He expressed confidence in partnering with the finance organisation: “From the outset, BGF demonstrated an interest in our business above and beyond that of a typical investor and having spent time talking to them over the past few months, we feel confident that they are the right fit for us,” he said.
Business Growth Fund has Mark Bryant added injected c. £45 million of growth capital into UK manufacturing businesses since its establishment in 2011.