Almost 100 jobs have been saved at County Durham car parts manufacturer DPE Automotive after the completion of a successful management buyout from its parent company United Steels limited.
The managing director and joint owner Peter Coates has taken ownership of the Newton Ayclife business with backing from investors Andrew Lapping, Rudi Wright and Rivers Capital Partners Limited.
The deal will help the Newton Aycliffe manufacturer, which supplies clients such as Nissan, Gestamp, Magna, RTEK, DS Smith and Johnson Controls, to strengthen its position in the industry and supply new customers.
Mr Coates said: “Our goal was to initially secure a solid purchase from United Steels with the support from the investment team.
“Once this had taken place we secured the working capital needed to keep up with the production cycles associated with the automotive sector.
“I am pleased to be retaining a great workforce within DPE Automotive Limited, which we hope will go from strength to strength, with our target to reach all major OEMs within the UK automotive sector.
Senior associate Marie-Louise Bozonet led the Square One law team that advised on the buyout and fundraising.
She said: “The DPE Automotive team has great plans for the business and I hope this will be a success story for manufacturing and engineering in the North East.
“This is a sector that they expect to see significant growth and investment in over the next few years and I wish them all the best with their endeavours.”
Ward Hadaway represented Rivers Capital through the deal.