Altec Secures £6m Investment to Support Growth
Date Added 30/07/2015
Engineering solutions provider Altec Engineering, based in County Durham, has become the latest company to secure investment from BGF (Business Growth Fund). Altec Engineering designs and manufactures special purpose equipment and manufactures high precision CNC components for the automotive, aerospace, mining, defence and oil & gas sectors. The company has received a £6m investment to support its buy and build strategy and organic growth. The first investment is the acquisition of neighbouring business Ronco Engineering.
Altec was founded by Ron Waite in 1978 and has expanded significantly over the past 18 months. The business successfully raised investment last year to expand its Durham site and invested in new cutting edge machine tool technology, a new specialist coatings division and our people. The past three years have seen revenues double through organic growth and the recent acquisition of Yorkshire based Sigma Technologies.
Sigma Technologies has an enviable reputation in the manufacture high quality CNC components for a variety of sectors and perfectly complements Altec’s existing capability and capacity.
The latest addition to the Altec Engineering Group, Ronco Engineering, is a precision engineering company based in Tanfield Lea, County Durham. Founded in 1992, it provides CNC manufactured parts to a wide range of customers such as Caterpillar and JCB.
Together, Altec, Ronco and Sigma employ around 140 people the majority of whom are experienced and skilled engineers, toolmakers and design staff. Our investment coupled with the recent acquisitions of Sigma and Ronco provides our customers a greater level of service and enhances our offering.
Investment in people has been key to our access and Altec has an enviable reputation in the training of apprentices and currently has eleven apprentices in training with three new starters in September. We were proud that this was recognised when one of our apprentices was awarded ‘Apprentice of the Year’ last year.
In order to meet the demands of a larger Group and complement the skills and experience of the existing senior management we have made a number of new Board appointments; David Bailey, former vice president of Parker Hannifin Europe, has been appointed as non-executive chairman, Simon McIntosh who has considerable experience in Corporate Finance joins as Group Financial Director and Barry Jackson joins the board of the company on behalf of BGF.
The Altec Group has ambitious plans to scale-up its business through accelerating its organic growth plans following the expansion and investment into its Durham site last year; the delivery of new value-added services such as specialist coatings and through further strategic acquisitions.
Alastair Waite, Altec Engineering said: "Altec was successful in obtaining funding from FW Capital last year which enabled us to grow the business to the stage where BGF could support us further. BGF’s investment has already helped us to move forward with our growth plans through the acquisition of Ronco - a solid business that shares our ethos around engineering quality and building long-standing relationships with customers. We were delighted to receive the backing of BGF to give us the confidence to deliver on our ambitious growth plans.”
Richard Taylor, BGF said: "Altec has a great team delivering excellent results. Alastair has a track record in executing buy and build strategies and has a pipeline of opportunities that, with our investment, will help the business scale quickly.”