An air conditioning company that serves clients nationwide has completed a management buy-out as it marks its 50th anniversary year.
Acrol Air Conditioning, which employs around 40 staff in Gateshead, has been acquired by Daniel Wood, the Sales Director and son of one of the previous owners. The deal was backed by a £300,000 loan from NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).
Founded in Newcastle to serve the marine industry, Acrol moved to Gateshead in 1993 when it was acquired by Daniel’s father Thomas Wood and business partner Mike Kears, who expanded into the commercial and industrial sectors. The deal enables them to release their shareholding though they will continue working in the business.
Daniel, who started as an apprentice over 20 years ago and who now becomes Managing Director, plans to continue growing the business by expanding its work in the renewables sector and exploring new opportunities in datacentres. He aims to achieve a four-fold increase in turnover within the next five to ten years.
Acrol installs cooling and heat pump equipment ranging from small domestic systems up to industrial-scale systems serving large commercial sites. It can manufacture custom-built systems in house and also offers service and maintenance. The company has provided systems for locations including Newcastle police station and MTV’s London headquarters and recently completed a project fitting out ships in Taiwan. It is currently working on HMRC’s new regional centre in Newcastle.
Daniel Wood, who now becomes Managing Director, said: “When Tom and Mike took over Acrol, it was a small design house serving the marine industry. They did a great job by turning it into a one-stop shop with its own manufacturing facilities, strong equipment and material supply chains and a broad client base. It’s exciting to be taking over the business and I see plenty of scope to grow across all sectors including the ever expanding datacentre market.”
Andy Clough of Mercia Debt added: “Air conditioning and heat pumps are in growing demand and modern systems combine both to create efficient climate control solutions. Acrol already has a proven track record for delivering large-scale projects nationwide. The funding has enabled Dan to take over the reins and he is now keen to take advantage of opportunities in this growing market.”
Peter Blackrock of Real Finance provided fundraising advice to Acrol, while Elephants Child acted as corporate finance advisers and TC Group provided accountancy services. Ignition Law provided legal advice to the company while Jacksons Law advised Dan Wood.
NPIF II – Mercia Debt Finance can provide investments in the NPIF II area with a primary focus on the Yorkshire and the Humber regions of North Yorkshire, Hull and East Yorkshire, West Yorkshire and South Yorkshire.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.