Air conditioning eyes fresh growth after management buyout

An air conditioning firm is targeting growth after completing a management buyout in its 50th year.

Acrol Air Conditioning has been bought by sales director Daniel Wood, with the deal backed by a £300,000 loan from NPIF II – Mercia Debt Finance, managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).

Daniel, the son of previous owner Thomas Wood, joined the business as an apprentice more than 20 years ago and steps into the role of managing director.

Founded in Newcastle in 1976 to serve the marine industry, Acrol relocated to Gateshead in 1993, when it was bought by Thomas and business partner Mike Kears. 

The pair have now released their shareholdings, but will continue working with the company.

Employing around 40 people, Acrol installs and maintains air conditioning, cooling and heat pump systems for domestic, commercial and industrial customers across the UK. 

The firm has delivered projects for clients including Newcastle Police Station, MTV’s London headquarters and HMRC’s new regional centre in Newcastle, while also completing work on ships in Taiwan.

Daniel says he plans to expand the company’s presence in the renewables sector and explore opportunities within the growing data centre market, with the ambition of increasing turnover fourfold over the next five to ten years.

He said: “When Tom and Mike took over Acrol, it was a small design house serving the marine industry. 

“They did a great job by turning it into a one-stop shop with its own manufacturing facilities, strong equipment and material supply chains and a broad client base. 

“It’s exciting to be taking over the business and I see plenty of scope to grow across all sectors.”

Andy Clough, of Mercia Debt, added: “Air conditioning and heat pumps are in growing demand.

“Acrol already has a proven track record for delivering large-scale projects nationwide. 

“The funding has enabled Dan to take over the reins and he is now keen to take advantage of opportunities in this growing market.”

The transaction was supported by Peter Blackrock of Real Finance, who provided fundraising advice, while Elephants Child acted as corporate finance adviser, TC Group provided accountancy services, Ignition Law advised Acrol and Jacksons Law acted for Dan Wood.

The £660 million Northern Powerhouse Investment Fund II, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

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