Acrol Air Condition, a Tyneside air conditioning company, has marked its 50th year with a management buyout backed by six-figure funding. The Gateshead-based firm, which employs 40 staff, has been acquired by sales director Daniel Wood, who is also the son of one of the previous owners. The deal was supported 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).
Company history and transition
Acrol was founded in Newcastle in the mid-1970s as a marine industry specialist before moving to Gateshead in 1993. At that time, it was acquired by Daniel's father Thomas Wood and business partner Mike Kears. Together they expanded beyond the marine industry, and the new deal will release their shareholding, though they will continue to work in the business.
Daniel Wood started working for the firm as an apprentice more than 20 years ago and will now become managing director. He has ambitions to boost turnover four-fold in the next five to 10 years, via winning more work in the renewables sector and exploring the datacentre market.
New owner's vision
Daniel Wood 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 including the ever expanding datacentre market."
Services and projects
Acrol installs cooling and heat pump equipment ranging from small domestic systems up to industrial-scale systems serving large commercial sites. It can manufacture custom-built systems in house and also offers service and maintenance. The company has provided equipment for locations ranging from a Newcastle police station and MTV’s London headquarters to ships in Taiwan. It is currently working on HMRC’s new regional centre in Newcastle.
Funding and support
Andy Clough of Mercia Debt added: "Air conditioning and heat pumps are in growing demand and modern systems combine both to create efficient climate control solutions. 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."
Peter Blackrock of Real Finance provided fundraising advice to Acrol, while Elephants Child acted as corporate finance advisers and TC Group provided accountancy services. Ignition Law provided legal advice to the company while Jacksons Law advised Dan Wood. NPIF II – Mercia Debt Finance can provide investments in the NPIF II area with a primary focus on the Yorkshire and the Humber regions of North Yorkshire, Hull and East Yorkshire, West Yorkshire and South Yorkshire.
