Investment firm takes major stake in car repair specialist

An operator-led investment firm has acquired a major stake in a Lancashire headquartered car repair business that has 18 sites across the north and midlands. 

Ama Capital has backed the management buyout team at The Vella Group, which has its head office in Skelmersdale.

It is Ama’s first investment and has been made in partnership with specialist private equity firm Keyhaven Capital Partners.

Vella Group is one of the UK’s fastest growing automotive repair centre groups and employs more than 470 people. Its latest accounts show a £34.1m turnover.

The existing management team, led by managing director Marc Holding, will continue to run the business and deliver its strategy.

In a statement announcing the deal, Ama said its investment would enable the business to continue to invest in its people, sites, systems and operational capability, supporting continued growth in a highly competitive market.

Karl Vella, the group’s exiting founder, said: “I feel a sense of real pride looking back at my time in the industry and what we have created in Vella, in no small part under Marc’s leadership in recent years.  I also feel very excited about its future. 

“We had multiple opportunities to sell but I’m delighted that the company chose Ama to help forge its own path.  I look forward to supporting from the sidelines in any way that I can.”

Marc Holding said: "It’s a privilege to take up the baton from Karl. We’ve delivered strong growth over recent years in a very competitive market.

"The group has done this by ensuring we blend the people-first approach of our founder Karl, the industry know-how of some of the longstanding team members, and the professional, functional expertise of those that have joined over the last few years.

He added: "We took our time to pick the right investor for us. Both Karl and I were insistent we needed to get this right to ensure we continue to be the partner of choice across the sector.

"We’ve always set the bar high, but with Ama’s unique approach using sector leads and functional specialists, and understanding of our market, we knew they could bring genuine strategic and operational support from people who have ‘been there and done that’.”

Alistair Hardie, Ama Capital non-exec partner, has joined Vella as chair, bringing extensive experience from the insurance sector and private equity-backed buy and build growth.

James Hill, Ama’s finance and operations specialist, has been appointed full time chief financial officer.

Additionally, Ama functional specialists Dominic Miller and Olympic gold medallist Adrian Moorhouse, will provide expert support on M&A activity and integration and culture and organisational development, respectively.

Ed Ransome, Ama Capital founding partner, said: “We’re delighted to support Marc and the team at Vella.

"What they have achieved to date is highly impressive, but not surprising given the company’s considered approach to growth and its focus on quality, organisational cohesion, culture and stakeholder alignment.

“We believe that Vella is incredibly well positioned to be the trusted partner of choice for customers, suppliers and other operators over the coming years.”

Andrew Ware, partner at Keyhaven, said: "We are excited at the prospect of helping to grow Vella and supporting Marc and his team in a sector that we have experience in.

"This is going to be a different journey from our prior experiences of the sector as we are very aware of Vella’s differentiated approach and raison d’être coming at a time of further evolution of the sector.”