AA Jones plots growth following buy-out

A Hull-based electrical wholesaler is set for expansion following a seven-figure management buy-out backed by Mercia Debt.

AA Jones Electric, which employs 20 staff at its premises on Venture Business Park and supplies electrical equipment for domestic, commercial and industrial use, secured £1 million in funding, with half from Mercia’s SME Loans fund and £500,000 from NPIF II – Mercia Debt Finance. 

Having recently introduced new lines such as solar lighting, electric vehicle chargers and smart building technology, bosses say the investment will enable the company to further extend its range of renewables and industrial cables, as well as create around five jobs over the next two years.

The buy-out sees co-founder Andy Moulds and long-standing employee Sam Lomax take control, allowing founder Ian Wayman to retire while Tony Moore remains as finance director.

Sam, who has become managing director, said: “Tony and Ian have built a very successful business with a dedicated and experienced team. 

“Having joined the company 13 years ago, I am very grateful for all the support and opportunities they have given me. 

“I am proud to be taking on the role of managing director and look forward to working with Andy and the team as we continue to grow the business.”

Rebecca Pickering, investment manager at Mercia Debt Finance, who worked with investment manager Mike Rogers on the deal, added: “AA Jones is well respected in the industry. 

“It sets itself apart from the big chains by its customer service and knowledgeable staff, and despite tough competition, has continued to grow revenues. 

“We are pleased to have been able to be able to support the buy-out and provide funding for its future growth plans.”

The Northern Powerhouse Investment Fund II is operated by the British Business Bank. 

Lizzy Upton, senior manager at the British Business Bank, said: “The future of the electrical industry is bright, with the likes of solar lighting and electric vehicle growing in popularity among consumers. 

“It is great to see Yorkshire and Humber businesses like AA Jones Electrical making use of NPIF II funding to capitalise on this, supporting its future growth and supporting the Northern economy.”

Blackburn-based Pierce Business Advisory and Accountancy Group provided corporate finance advice to AA Jones, while WHN Solicitors of Bury provided legal advice.

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