A Hull-based electrical wholesaler has undergone a seven-figure management buy-out backed by funding from Mercia Debt.
AA Jones Electric, which was founded in 2009 and is now one of the region’s leading independents, supplies electrical equipment for domestic and commercial use, as well as industrial automation and controls.
The buy-out gives control of the business to co-founder Andy Moulds, the Sales Director, and long-standing employee Sam Lomax, who becomes Managing Director. It will allow for the retirement of one of the founders, Ian Wayman. The third founder, Tony Moore, will retain a stake in the business and continue in his role as Finance Director.
The company has secured a £1m funding package, with half coming from Mercia’s SME Loans fund to support the buy-out. NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II), also provided £500k to support the growth of the business following the buyout.
AA Jones employs 20 staff at its premises on Venture Business Park and serves both the public and trade buyers. The company acquired an adjoining distributor, Seltec Automation, in 2022 which is now fully integrated. It currently stocks over 12,000 product lines and offers specialist advice on factory automation or for projects required to meet building or health and safety standards.
Having recently introduced new lines such as solar lighting, EV chargers and smart building technology, it now plans to further extend its range of renewables and industrial cables. The funding from NPIF II will provide additional working capital to enable it to increase stock levels and create around five new jobs in the next two years.
Sam Lomax, Managing Director, said: “Tony and Ian have built a very successful business with a dedicated and experienced team. Having joined the company 13 years ago, I am very grateful for all the support and opportunities they have given me. I am proud to be taking on the role of Managing Director and look forward to working with Andy and the team as we continue to grow the business.”
Rebecca Pickering and Mike Rogers of Mercia Debt worked on the deal.
Rebecca Pickering said: “AA Jones is well respected in the industry. It sets itself apart from the big chains by its customer service and knowledgeable staff and despite tough competition, has continued to grow revenues. We are pleased to have been able to be able to support the buy-out and provide funding for its future growth plans.”
Pierce Business Advisory and Accountancy Group of Blackburn provided corporate finance advice to the company, while WHN Solicitors of Bury provided legal advice.
Paul Bennett of Pierce said: “It was a pleasure to work with the team at AA Jones to structure a transaction that allows the management team to take the business forward and we look forward to seeing the business continue to grow over the coming years.”
