Brown in full control at Quantum

Posted: Thursday 13th January 2011

Aldermore, the new British Bank, has backed the Management Buy Out (“MBO”) of Prudhoe-based drives and motors specialist, Quantum Controls Limited.

Managing Director, Kevin Brown, has exercised an option to purchase the remaining 60 per cent of Quantum Controls following the partial MBO of the business nine years ago.

Under the terms of a shareholders agreement entered into in 2001, Kevin was able to increase his shareholding in the Company year on year to 40 per percent by the autumn of 2009. Aldermore has provided acquisition finance and working capital facilities to support the buyout.

Quantum Controls is Europe’s largest distributor of ABB drives and motors supplying a range of Variable Speed Drives (“VSDs”), AC and DC motors, HVAC equipment and UPS equipment. Quantum Controls can name Northumbrian Water, Sellafield and GlaxoSmithKline amongst its client base and is an official partner of the Carbon Trust.

As well as supplying a range of drives and motors, Quantum Controls, which recorded a turnover of £3.2 million in 2009, is a business that works in the utility, property and construction sectors.

The working capital facility will be used to spearhead a marketing strategy that will increase awareness of the firm's for-hire range of VSDs to its client base. Quantum Controls also hopes to capitalise and service growing demand from public sector organisations looking for energy efficiency technology.

Peter Cromarty, Regional Manager at Aldermore in the North East, said:

"This is a great opportunity for Quantum Controls to build on its leading position in its sector and achieve its aspirations of diversification in a number of emerging sectors. Now with the right financial support, and with a strong management team at its helm, Quantum Controls is well-placed for growth and I wish Kevin and his team all the best in the future."

Kevin Brown, Managing Director at Quantum Controls, said: "As Quantum Controls enters the next stage of its expansion strategy, Aldermore's support will prove vital in enabling us to develop our product offering and capitalise on opportunities that arise in the market. I look forward to working with the rest of the management team during what will be an exciting time for the business."

The management team was advised by Chris Appleby and Chris McCourt at BTG Corporate Finance in Newcastle. Legal advice was provided by Gary Copeland and Zoe Dick at the Darlington office of BHP Law, and Matt Collen of Sintons LLP advised Aldermore

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