Construction kit hire specialist Mechplant has landed investment it will use to carry out ambitious growth plans.
The South Shields-based firm has secured the six-figure sum from NPIF II - NEL Debt Finance, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II). It will be used to strengthen the Port of Tyne-based company's capacity by investing in its equipment fleet.
The move is intended to allow Mechplant to meet increasing demand from the construction and civil engineering sectors in the North East, where it operates Tyneside, Wearside, Durham, and Teesside bases. Director Stephen Makinson said the investment will be an enabler of growth for the 23 year-old firm.
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He said: "This investment marks an exciting milestone for Mechplant as we continue to grow and strengthen our presence across the North East. The support from NEL has been invaluable, and their team really understood our vision and ambitions from day one."
The investment was led by Jane Siddle, senior investment executive at NEL Fund Managers. She said: “It was a pleasure working with the directors at Mechplant during the investment process, they have a long-established track record, excellent reputation and communicated very clearly their plans for growth."
Mechplant has already seen growth in recent years, including via the acquisition of regional rival D&K Plant Hire Limited in 2022. In the same year the firm also snapped up the assets of Newcastle-based Webster Plant Haulage.
The business started life as part of construction outfit Esh Group until it was later sold to its management team. Mechplant now specialises in crane hire services.
Sarah Newbould, senior investment manager at the British Business Bank said: "Supporting well-established regional businesses as they execute their growth plans is exactly what NPIF II was designed to do. It’s great to see a business with such a strong heritage continuing to evolve, and we’re pleased to see NPIF II playing a role in Mechplant’s next chapter and creating new opportunities across the North East."
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The investment from NEL Fund Managers was supported by legal advice from Max Gilchrist, corporate associate solicitor at Mincoffs Solicitors. Corporate finance expertise was provided by Chris Hird, director, and Lee Jefferson, corporate finance manager at S&W, whose input was instrumental in ensuring the successful completion of the transaction.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25,000 to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.