Midlands-based Elaghmore fund invests £11m in automotive manufacturer

The deal will enable a management buyout of Cambridgeshire-based commercial vehicle part manufacturer SB Components. They will be supported by experienced entrepreneurs and founders of the £60 million Elaghmore Fund, Elaghmore I (Fund 1). David Manning Andy Ducker and Greg Koral, who will each join the firm’s board. 

SB Components has almost 30 years’ experience in the production and delivery of vehicle parts for its clients including John Lewis, DHL, Tesco and TNT. The business currently employs more than 130 staff and has an annual turnover of £15 million. 

David Manning, managing director of the Elaghmore Fund, said: 

“The manufacturing, engineering and industrial sectors in the UK provide a vital contribution to its strength and resilience in the global market, something that is even more important as we enter a post-Brexit landscape. Andrew and I saw a real need for further investment and support for these businesses to help them to continue to evolve and grow so we set up the Elaghmore Fund. 

“SB Components is a thriving business that has experienced strong year-on-year growth and has a track record for delivering quality products for some of the UK’s biggest names. It was a fitting first investment opportunity for the Fund and we look forward to being involved in its exciting future.” 

Our Birmingham corporate team advised on the deal. Peter McLintock, corporate partner, said: 

“This investment fund is a prime example of how the Midlands region is driving the manufacturing industry forward on a national scale and has had a positive and proactive response to Brexit. This deal has been an exciting project for us as it’s not only highlighted the greater potential of an already successful manufacturing business in SB Components, but it’s has proven the ongoing commitment from investors to the sector and its continued transformation.”