The management team at one of Scarborough’s largest employers has bought the firm in a deal backed with £10.5 million of private equity.
Dale Power Solutions, which has been operating in Scarborough for more than 75 years, has been taken over by its management team who bought the business from global group TT Electronics.
The deal was backed by private equity firm LDC, which has received a “significant stake” in Dale Power after investing £10.5 million in the buy out.
Dale Power’s chief executive Tim Wilkins, who led the managemet buy out, said: “LDC’s investment brings additional strategic input and financial backing to our business and will help us to deliver our ambitious growth plans.
“As well as increasing the pace of organic growth across our core brands, we are keen to pursue appropriate acquisition opportunities both in the UK and internationally and in related product areas.”
Mr Wilkins will be joined on the new Dale Power board by Andy Lydon and John Green, who led the deal from LDC, while Denzil Lee takes the position of chairman.
Dale Power Solutions, which operates through Dale and Erskine brands, employs more than 200 people and has its headquarters in Salter Road, Eastfield, as well as a second factory in Filey.
The business, which has an annual turnover of more than £30 million, manufactures generators and UPS systems which provide emergency power customers including hospitals, data centres, financial institutions and transport organisations.
Martin Draper, LDC’s UK new business managing director, said: “Dale Power Solutions has a leading worldwide reputation through its leading industry brands - Dale and Erskine, both of which are highly regarded and well recognised in their respective markets for their technical expertise.
“Going forward, we will work closely with the team to identify organic and acquisitive opportunities to accelerate growth.”
Dale started out as Dale Electric in 1935 when the late Leonard Dale, convinced there was a need for electrical wiring services in his local area, started the business with 11s 8d (58.5p) from his Yorkshire Penny Bank book.
It is now an international brand with operations in Mexico, Brazil and the United Arab Emirates while UK operations are centred in Scarborough, Swindon London and Aberdeen.