To date, BGF has invested £5.5m of growth capital in VTL Group in total since our initial £4m investment in September 2013.
VTL is a leading UK developer and manufacturer of precision engineered transmission and turbo components for the commercial vehicle and passenger car markets. VTL supplies these components to major automotive manufacturers including Cummins, Toyota, Renault and Nissan and also provides a variety of additional services including product R&D and prototyping. It is one of the largest precision contract manufacturing businesses operating in the UK within its specific niche areas of turbo and transmission components and serves a large and growing international marketplace
Formed in 2001, VTL has developed from a single product, single site European focused business, to a global operation, manufacturing multiple products and employing over 400 people generating annual revenues of around £50m. It is headquartered in Huddersfield, where it also has four manufacturing facilities and an R&D centre. In addition VTL has a manufacturing facility in Charleston, USA, a manufacturing facility in Dharwad, India and a sales and technical presence in Yokohama, Japan. VTL serves customers across Europe, North America, India and Asia.
BGF’s initial and follow-on investment is helping drive organic growth through the development of new customers and expanding the product range. Specifically, the £1.5m follow-on investment in January 2015 will be used for a capital investment programme ahead of commencing an eight-year project to supply engine components through Ryobi UK to JLR for use in its new engine platform. Going forward, acquisitions will also form part of VTL’s growth strategy with further backing from BGF.
Alongside its initial equity investment, BGF introduced Michael Baunton as Non-Executive Chairman. Michael has an extensive background in the automotive sector and joins VTL from the Society of Motor Manufacturers and Traders (SMMT) where he was Interim Chief Executive. Prior to this, his roles included President and MD at Tenneco, President at Perkins Engines and Vice President at Caterpillar. He is also currently on the board of TT electronics plc and ACAL Energy. Michael was awarded a CBE in 2004 for services to the automotive and engineering industries in the UK.