AA Jones Electric: Leading the Charge with Seven-Figure Buy-Out
Deal News | Jan 21, 2025 | Mercia Fund Management (Mercia Ventures)
AA Jones Electric, a Hull-based electrical wholesaler founded in 2009, has successfully undergone a management buy-out supported by a seven-figure funding package. This strategic buy-out was largely backed by Mercia Debt, a part of Mercia Ventures, with significant contributions from the Northern Powerhouse Investment Fund II. The buy-out transfers leadership to Sales Director and co-founder Andy Moulds, and long-serving employee Sam Lomax, who will assume the role of Managing Director. The restructuring allows for the retirement of founder Ian Wayman, though another founder, Tony Moore, maintains his involvement in the company as Finance Director. The funding initiative will empower AA Jones to expand its product line to include additional renewable energy solutions, reinforcing its growing reputation within the electrical wholesale market. The deal highlights Mercia Debt’s commitment to supporting strong regional businesses and aligns with the Northern Powerhouse Investment Fund II’s objective to bolster the economic potential of the Northern region. With 20 employees and a fully integrated acquisition of Seltec Automation completed in 2022, AA Jones is poised to expand further while also creating five new jobs through increased stock and capital support.
Sectors
- Electrical Equipment
- Private Equity
- Renewable Energy
Geography
- United Kingdom – AA Jones Electric is based in Hull, and the investment from Mercia Debt supports regional expansion within the UK, particularly the North of England.
- Northern England – This region is the focus of the Northern Powerhouse Investment Fund II, aiming to enhance economic growth in Northern England.
Industry
- Electrical Equipment – AA Jones Electric operates in the Electrical Equipment sector, supplying a range of products from domestic to industrial automation equipment.
- Private Equity – The involvement of Mercia Ventures and Mercia Debt highlights the role of the Private Equity and Debt Financing industry in supporting management buy-outs.
- Renewable Energy – AA Jones is expanding its product line to include more renewable energy solutions, mirroring trends in the Renewables sector.
Financials
- £1 million – Total funding package secured for the management buy-out of AA Jones Electric.
- £500,000 – Part of the funding provided by Northern Powerhouse Investment Fund II for AA Jones Electric's future growth.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AA Jones Electric | Target Company | Company | An independent electrical wholesaler based in Hull, involved in recent management buy-out. |
| Mercia Fund Management (Mercia Ventures) | Private Equity Firm | Company | Provider of debt financing to support the management buy-out of AA Jones Electric. |
| Northern Powerhouse Investment Fund II | Funding Provider | Company | Provided part of the financing to support the growth and sustainability of AA Jones Electric. |
| Pierce Business Advisory and Accountancy Group | Corporate Finance Advisor | Company | Provided corporate finance guidance for the management buy-out transaction. |
| WHN Solicitors | Legal Advisor | Company | Provided legal advice to AA Jones Electric during the buy-out process. |
| Andy Moulds | Co-founder and Sales Director | Person | Part of the new leadership team at AA Jones Electric post-buy-out. |
| Sam Lomax | Managing Director | Person | New Managing Director of AA Jones Electric following the buy-out. |
| Tony Moore | Co-founder and Finance Director | Person | Founder maintaining a stake in the business and continuing in his role post-buy-out. |
| Ian Wayman | Co-founder | Person | Retiring founder of AA Jones Electric. |
| British Business Bank | Supporting Participant | Company | Provides overarching support through the Northern Powerhouse Investment Fund II. |