THE North East branch of the UK's newest bank has backed the management buyout (MBO) of Prudhoe-based drives and motors specialist, Quantum Controls.

Managing director Kevin Brown exercised an option to purchase the remaining 60% of Quantum Controls following the partial MBO of the business nine years ago.

Under the terms of a shareholders’ agreement entered into in 2001, Brown was able to increase his shareholding in the company year on year to 40% by the autumn of 2009.

Aldermore, set up in late 2009, provided acquisition finance and working capital facilities to support the buyout.

The working capital facility will be used to spearhead a marketing strategy and help Quantum capitalise and service growing demand from public sector organisations looking for energy efficiency technology.

Peter Cromarty, regional manager at Aldermore in the North East, said: “This is a great opportunity for Quantum Controls to build on its leading position in its sector and achieve its aspirations of diversification in a number of emerging sectors.

“Now, with the right financial support, and with a strong management team at its helm, Quantum Controls is well-placed for growth and I wish Kevin and his team all the best in the future.”

Mr Brown said: “As Quantum Controls enters the next stage of its expansion strategy, Aldermore’s support will prove vital in enabling us to develop our product offering, and capitalise on opportunities that arise in the market. I look forward to working with the rest of the management team during what will be an exciting time for the business.”

The management team was advised by Chris Appleby and Chris McCourt at BTG Corporate Finance in Newcastle. Legal advice was provided by Gary Copeland and Zoe Dick at the Darlington office of BHP Law, and Matt Collen of Sintons law firm in Newcastle advised Aldermore.