The £20 million deal is the first transaction for the turnaround-focused firm, which Moulton established after quitting Alchemy Partners last September.

Gardner has experienced ‘major declines in demand for its business jet and truck transmission products’ since the beginning of last year, according to Better Capital.

The firm has invested £15 million in the company to pay down debt and fund future growth, and anticipates releasing a total of £20 million.

Gardner had net liabilities of £29.3 million and annual sales of £66.2 million in the year to August 2008. The company was acquired by The Carlyle Group, a private equity investor, in November 2008. Previously it was owned by Dunedin Capital Partners and Rolls-Royce.