The Velocity machines can patch up to 150 potholes per day and are built in the North East. They are exported worldwide and Reece now aims to team up with partners or franchisees abroad who have specialist knowledge of their markets.
Reece Group finance director Phil Kite said: “Velocity already has vehicles in production in South Africa and the Gulf, with interest from other countries. However, in order to fulfil the potential for expansion of the overseas business, significant further funding is required.
“Therefore, it made sense for Reece Group to take full ownership and make the further investment required.”
He said that Velocity’s former owner Richard Jackson would continue to be involved with the business.
Production of the pothole filling machines takes place in Pearson’s Walker factory, which normally makes specialised counter-mine and combat equipment for armoured fighting vehicles used in Afghanistan and Iraq.
Velocity originally linked up with Pearson last year because it was struggling to meet demand and also wanted to take advantage of the research and development capability of the larger business.
In the UK, the machines are hired out to local councils, along with the crews to operate them.
Accountants UNW provided corporate finance advice to the Reece Group on the deal, with Dickinson Dees providing legal advice. Ward Hadaway acted for Velocity.
UNW partner Steve Lant said: “We were delighted to be able to help shape a deal which works for everyone and see it through to completion.
“Most importantly, Velocity is now part of an excellent engineering group which can provide expertise and funding to help the business realise its potential.”