A new manufacturing investment for the Business Growth Fund has seen it back precision-engineered components company VTL Group.
Huddersfield-based VTL Group has scooped a £4 million growth capital investment and will use the funds to develop new customers in the automotive sector as well as increasing its range of components.
The investment has come from the Business Growth Fund (BGF), a £2.5 billion fund set up by a syndicate of high street banks.
VTL Group is now the 10th manufacturing transaction that the BGF has made following investments in businesses including branded children’s luggage company Trunki and toy development and distribution firm Wow! Stuff.
Established in 2001, VTL Group develops and manufactures transmission and turbo components for commercial and passenger vehicles. It has clients including Toyota, Renault and Nissan and posted recent revenues of £50 million.
Alongside its headquarters in Huddersfield, the business also possesses a manufacturing facility in the US and India as well as a sales and technical presence in Japan.
VTL Group CEO Bruno Jouan says that the backing from the BGF will allow the business to continue with the research and development, new products, and people investing that has been going on for the last 12 years.
‘We see a number of exciting ways to grow the business organically and acquisitively both here in the UK and overseas,’ Jouan adds.
‘Our partnership with BGF and continued support from HSBC will enable us to take advantage of the significant growth opportunities in the automotive component manufacturing and development markets.’
To go with the £4 million it has injected, the BGF has also introduced Michal Baunton as non-executive chairman. Having served at the Society of Motor Manufacturers and Traders as interim chief executive, he will add contacts and experience in the industry, according to a statement.
Richard Taylor, senior investment manager at the BGF, comments, ‘Employing over 300 skilled staff in the UK alone, VTL is a prime example of a Yorkshire manufacturing firm with its heart in the UK and operations across the globe.
‘Michael’s appointment is a significant endorsement of VTL and its prospects and his wealth of contacts and sector experience will no doubt prove invaluable to the business.’