A Chelverton Investor Club Investment
Dartford, Kent, UK
Buy-in management buy-out (BIMBO)
How much did Chelverton Investor Club Members invest: £1.0m
Electrobase is an engineering firm undertaking precision sheet metal work alongside its particular specialism; aluminium salt bath dip brazing. The company is one of only a handful of businesses in the UK employing this metal forming process.
Why did Chelverton Investor Club Members Invest
The business enjoys an excellent reputation amongst its long-standing customers, with its niche / market-leading positioning delivering consistent good quality earnings.
The potential applications for the salt bath dip brazing technique are widening, and the incoming Management buy-in (MBI) CEO has significant aerospace sector experience where it is hoped the company can develop its presence significantly.
How did we come across the company?
Having developed an understanding of this niche market, and the opportunities within it, our Unquoted Investment Team worked with the MBI CEO to proactively target Electrobase, before structuring a deal with the incumbent management that ensured they remained actively involved and incentivised going forward.
We introduced the transaction to Chrysalis VCT, who matched the Chelverton Investor Club equity investment, as well as sourcing debt finance to support the acquisition.
The potential applications for the salt bath dip brazing process are significant, whilst the exponents of the technique are few and far between. With a well connected CEO and a renewed focus on Sales & Marketing, there’s a great opportunity to take this niche engineering business to a new level.