Deal secures investors for vehicle company

Feb 3 2010 by Peter McCusker, The Journal

AFTER its lender pulled out at the last minute the persistence of Tait Walker’s Steve Plaskitt ensured that a deal to secure vehicle control company ComeSys went ahead.

ComeSys boss Ryan Maughan anticipated bank support would provide him with enough to cover the investments of two of the original venture capitalist investors and help him invest further in its future.

Plaskitt’s determination saw three new venture capitalists step in to replace the bank and the deal was secured.

Maughan said: “The bank pulled out at the eleventh hour and we had no luck pursuing the conventional funding route. However, Steve Plaskitt of Tait Walker was persistent and helped us find the consortium of new investors.”

Ryan Maughan helped establish vehicle control system Cramlington-based ComeSys in 2003, before later establishing Avid electric vehicles, and the new capital injection will see the two businesses now operate through holding company MSI Holdings.

Plaskitt, corporate finance partner at Newcastle-based accountants and business advisors Tait Walker, helped secure support from venture capitalists Chris Thompson, Chris Baylis and Dr Howard Forrest following months of negotiations.

He said: “I am very pleased for the management of MSI to have found such excellent business angel investors who will bring so much valuable expertise and experience to them.”

Serial entrepreneur Chris Thompson, who has launched 40 firms, is chief executive of Gateshead-based engineering business Express Group; Chris Baylis is former head of engineering at Nissan Europe; and Dr Howard Forrest is the former managing director of the Cookson Group.

ComeSys currently achieves annual sales of £1.2m with a staff of 15. It counts Volvo, Daimler, DAF and MAN among the customers for its electronic accelerator pedals and hand controls.

Avid, which is based next to ComeSys at Nelson Park, Cramlington, makes engines and gear boxes for electric vehicles, employs 10 staff and has annual revenues of £2m. Mr Maughan expects both companies to be employing 40 staff with ComeSys achieving a turnover of £9m and Avid £10m within three years.

Duncan Reid, corporate finance partner and head of private equity at Watson Burton, which handled the legal aspects for MSI Holdings, said: “This is an important deal which helps to propel the region to the forefront in the UK for electric car design and production.

“Our role as legal advisers helped to structure the transaction and negotiate the complex documentation around the investment.”

Watson Burton’s senior level team also included corporate finance and banking partner Mark Lazenby, employment partner David Jenkins and corporate finance solicitor, Paul Wigham. Tait Walker’s team included corporate finance partner Steve Plaskitt and corporate finance executive Lucy Gray.