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110 jobs saved with acquisition of Coventry firm

Posted on 15 Jan 2021 and read 693 times
110 jobs saved with acquisition of Coventry firmA multi-million-pound acquisition and working capital funding package provided by BREAL Zeta Commercial Finance has secured 110 jobs at Coventry-based Evtec Automotive Ltd, formerly Arlington Engineering Systems, and could lead to the creation of 50 more.

The package will support new owner David Roberts, industrialist and former group chairman of Arlington Industries until 2014, as he acquires the business and embarks on a growth strategy that will see Evtec Automotive invest in its team and core services. As part of its growth strategy, Evtec Automotive will seek to drive turnover from £55 million to £70 million over the next three years.

Evtec Automotive – which was formerly known as Arlington Engineered Systems and part of the Arlington Automotive group (in administration) – specialises in manual assembly for the automotive sector. This includes providing electrical, fluid and air, mechanical and aftermarket module assemblies.

Mr Roberts will take on the role of chairman and maintain the firm’s presence in Coventry. The business will continue its work with clients such as Jaguar Land Rover and Ford as they restart production following the coronavirus pandemic.

He also plans to return the business to its Remploy heritage and provide employment opportunities for disabled people across the West Midlands.

Strong future

Mr Roberts said: “Arlington Engineered Systems was a strong business, but the immediate result of the Covid-19 pandemic impacted the firm in a way no one could have predicted. Now that production across the automotive sector has kicked back into gear, I believe there is still a strong future for the company and with the right leadership and financial support I am confident that we can drive future growth.

“My immediate focus is to support the team and established client relationships, and I will then be looking to refocus the business back to its roots – which includes providing more employment opportunities for disabled people across the region.

“FRP Advisory Group has played a huge role in getting this deal over the line and I would like to thank Andy and his team for introducing me to BREAL Zeta Commercial Finance and helping to secure the funding that will set us up for future growth.”

Andy Pickford, director in FRP’s debt advisory team, said: “Not only is David an industrialist with a strong background in the automotive sector, he knows the business extremely well given his former role with Arlington Industries and is well-placed to drive forward the growth of the business.”

“BREAL Zeta proved to be a flexible and forward-thinking lender, and we’re thrilled to have secured a sizeable structured facility from the team that gives David the financial backing he needs to kickstart his growth plans, and their support is a sign of confidence in David and his team.

“We are seeing an increase in carve-out M&A transactions as a result of the coronavirus pandemic and expect this deal type to remain a core feature of the market over the months ahead.”

Annabel Todd, BREAL Zeta Commercial Finance business development director, said: “Under David’s leadership, we’re confident that Evtec Automotive has a strong future and it has been a pleasure to provide the financial package that will not only support employment opportunities for people across the West Midlands but create a business that is truly focused on making a difference to its local community.”