Safanad, the investment firm, has acquired a controlling interest in the UK’s largest alloy wheel manufacturer, Rimstock Plc. Rimstock, which recently celebrated its 30th year in manufacturing, employs over 230 people at its facilities in the West Midlands, England and produces both aftermarket and OE wheels. According to the companies, the business will remain headquartered in West Bromwich, United Kingdom.
While no price-tag has formally been released, it is understood to be a multi-million pound deal. What we do know is that the company currently employs around 230 people and annual sales are reported just under £17 million a year. The new owners are also said to be planning significant investments in UK manufacturing. This follows on from earlier successful funding applications – last year Rimstock secured more than £3 million in a regional development grant from the government.
Safanad is partnering in this acquisition with New York based investment firm, Current Capital, and UK executive David Roberts. Roberts will replace Rimstock founder, Steve Neal, as the executive chairman of Rimstock and will join the board of Rimstock Holdings Limited, the new parent company of Rimstock Plc.
Rimstock founder Steve Neal’s son Matt, the famous touring car racing driver and former Rimstock marketing director, will stay will the company as a brand ambassador.
Additionally, Glenn Mercer, an auto industry veteran and a former Partner in the automotive practice at McKinsey, will join the Board of Rimstock Holdings Limited.
Craig Kahler, director of Private Equity at Safanad, commented: “Rimstock is well positioned in the premium automotive market and has a demonstrated success of meeting the demands of the most demanding OE customers. We are thrilled to support Steve Lane, managing director and CEO, and the rest of the management team as they expand their operations to meet the needs of their growing customer base.”
David Roberts, Executive Chairman, added: “Rimstock is exceptionally well positioned for continued growth. I am excited to join the organization with the support of Safanad and Current Capital to take the Company to the next level.”
Steve Lane, managing director and CEO, Rimstock, said: “We’re proud to partner with Safanad and Current Capital, who are aligned with Rimstock’s vision of the future and the strategic plan to get there. Our potential for accelerated growth to meet the needs of our customers is well supported.”