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MBO at Durham’s Stylo UK backed by £250k investment

Durham-based Stylco UK Ltd, a distributor of domestic appliances, has been acquired by its management team, led by Managing Director Ian Vermeulen.

UK Steel Enterprise has backed the buyout with a £250k investment from its Equity Growth Fund, backed by the government’s Regional Growth Fund, and is providing working capital for the company which has already expanded into new warehousing facilities in Newton Aycliffe.

Stylco UK Ltd has the exclusive rights to distribute Brabantia products in the UK, Ireland and Europe and handles a range of other leading brands including Masterchef, Nakimichi, Eric Beare and Stylus.

Ian Vermeulen said: “We are keen to expand into new areas and have already moved to exploit a gap in the market by meeting demand from smaller retailers. They are showing a strong interest in Stylco and we had a considerable number of pre-orders before a stock consignment had even arrived in the UK.

“We are also very pleased with the response to our appearance at three major electrical trade shows in London, Birmingham’s NECC and Silverstone recently. We have the real benefit of a continued strong relationship with the UEG Group which is one of the leading OEM (original equipment manufacturer) suppliers of consumer electronics and home appliances world-wide.

“The support and very welcome investment from UK Steel Enterprise has made a massive difference to us and is enabling us to move ahead with this expansion. We are bringing global brands into the UK and are confident that we will continue to do well in a market that is worth around £779m,” he added.

Peter Taylor of UK Steel Enterprise, said: “Working capital is vital for early stage businesses and we are delighted that our investment has enabled this expansion to go ahead.

“Stylco UK Ltd has a highly experienced management team, a strong customer base and real potential for growth. It has been very satisfying to work alongside Evolution LLP again and help to get this company in a position to expand and create jobs.”

The buyout has safeguarded or created a total of 12 jobs in management, marketing, logistics and warehousing and more are in the pipeline as the company grows.

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