POTHOLE repair specialist Velocity is in new hands.
Bosses at the Hendon company have promised it will be business as usual after the takeover by the Newcastle-based Reece Group.
Reece, which includes Pearson Engineering, took a 50 per cent stake interest in Velocity last summer, and has now acquired the remaining half of the business.
Business advisers and accountants UNW assisted with the deal.
Partner Steve Lant said: “It was assumed after the initial 50 per cent acquisition that, at some time in the future, the Reece Group would acquire the balance of the business.
“So when Phil Kite was appointed as group FD and we discussed the group’s forward acquisition criteria, Velocity was highlighted as the first target.”
He added: “Velocity’s pothole repair vehicles are market leading and there is an opportunity for worldwide sales.
“However, to fulfil Velocity’s potential it was clear further investment would be needed, as well as assistance in scaling up its manufacturing capacity and development of its overseas business.
“Reece Group has cash to invest to develop the right businesses, experience of manufacturing complex vehicles and, over the years, has built up significant overseas sales.
“We had lengthy discussions with Richard Jackson, the other 50 shareholder, about the future potential of the Velocity business and how this might be achieved.
“This led to the consensus that it was in everyone’s best interests for Reece Group to take full ownership with Richard staying involved to provide the benefit of his extensive experience. ”
Phil Kite said: “An unusual feature of the negotiations was that if the deal broke down we would still have to work with Richard going forward.
“However, by investing a lot of time in assessing the business requirements and how they could be best met going forward, we had a good platform to agree a deal that worked for everyone.
“We are grateful to Richard for letting us take full ownership of Velocity and we look forward to continuing to work with him.”