Mike McDonough, founder of Sertec Plastics, has bought the UK company out of the Sertec Group with financial backing from Lloyds TSB and accountants and business advisers PKF.

An Aston, Birmingham, business originally launched in 1986 has been bought by its founder in a management buyout (MBO) advised by Birmingham professional firms. Mike McDonough, founder of Sertec Plastics, has bought the company out of the Sertec Group with financial backing from Lloyds TSB Commercial Finance in Birmingham. The transaction was led by Jat Najran and Andy Kay, corporate finance directors at accountants and business advisers PKF and the management team was advised by Gary Davie and Sara Woodward of Putsmans Solicitors.

Sertec Group took external advice from Paul Wakefield of Clarke Wilmott.

The company specialises in vacuum-formed and polyurethane moulded components for a variety of applications including automotive, construction, agriculture, work vehicles and general engineering.

As well as supplying interior vehicle trim components for specialist car manufacturers such as Aston Martin, Lotus and Renault, Sertec Plastics also supplies items such as replacement blue plastic hoods for lottery ticket stands.

Having carved out a specialist niche in its sphere of operations, Sertec Plastics now manufactures some 300 different parts and in the last 12 months has added JCB and Land Rover to a growing list of customers.

Now the business is looking to grow both in premises and staff.

Staff numbers have already grown from 32 to 43 and managing director Mick McDonough is looking to expand near the current 36,000ft2 Witton premises and add skilled staff as the business grows.

McDonough explained the reasoning behind the management buyout.

'The products and services we provide were no longer regarded as a core activity by the Sertec Group and we felt that more focus and investment was needed on Sertec Plastics to put us in a position to deliver the ever more demanding requirements of our customers.' He continued: 'We appreciate the role our advisers played in structuring the transaction and believe that with our technical expertise and experience and continued close business relationships we are now in a position to move forward.' Jat Najran of PKF Corporate Finance said: 'In the wake of recent problematic conditions in the West Midlands engineering community it was particularly rewarding to be involved in a deal that secured an excellent company's niche position in a competitive market.' He said: 'Mike has an established track record of investing in and developing businesses and with his company's knowledge of their existing markets and innovative engineering capability, Sertec Plastics should be well placed to exploit its undoubted potential.' Putsmans corporate partner Gary Davie said: 'We are always delighted to be working with and supporting West Midlands manufacturing companies.

The successful completion of Sertec Plastics is the latest of several management buyouts we have acted on in recent months.

Mike came to us on the recommendation of another client, which is always nice, and we look forward to working with him and his team in the future.'