Member Article

Jarrow electrical manufacturer in £2.5 million management buyout

Jarrow-based electrical components manufacturer HVR has undergone a management buyout with the help of a £2.5 million bank loan.

The Bede Industrial Estate business, which employs 120 members of staff, will be taken over by Kevin McLaughlin and Stephen Elliott.

The pair received a loan from Lloyds Bank Commercial Banking to support their move which follows the retirement of two other company directors

Stephen Elliott, sales and marketing director of HVR International, said: “This investment in the business will give us a great foundation to build upon in the coming year. We’ve seen steady growth in recent years which is something that we’re looking to drive going forward.

“As a relatively small business with a niche product we are able to focus on offering our clients a very personal level of service, and we constantly travel around the world to meet new customers face to face.”

HVR has two smaller divisions in Birmingham and Germany and currently has a combined turnover of around £13 million.

The firm specialise in components used in wind turbines, medical science and in the laboratories of the European Organisation for Nuclear Research, CERN.

Don O’Henly, specialist manufacturing relationship director for Lloyds Bank Commercial Banking, said: “HVR International has an outstanding reputation globally as a producer of high quality electrical components, which is a credit to the whole company.

“It’s great to see regionally-based SMEs like this competing and winning against international competition, reflecting both the high standards of their work and business acumen.

“We remain committed to supporting manufacturers across the UK to help them seize growth opportunities when they appear, and we have trained more than 100 managers in partnership with the University of Warwick, the EEF and the Manufacturing Technologies Association, to be able to provide specialist guidance to businesses in the manufacturing sector.”

This was posted in Bdaily's Members' News section by Tom Keighley .