West Brom's Rimstock bought in multi-million pound deal

One of the Black Country's leading manufacturing firms has been bought by American investors in a multi-million pound deal.

The price tag on the takeover of Rimstock, which makes forged and cast alloy wheels, has not been revealed but the new owners are promising major investment and growth for the future.

Rimstock chief executive and managing director Stephen Lane, who has worked at Rimstock since it was founded in 1984, remains at the head of the company with a new executive chairman, British entrepreneur David Roberts.

Rimstock's founder Steve Neal has sold the business but will remain as a consultant, while his son Matt, the touring car race driver and former marketing director, will be retained as a brand ambassador.

Matt said: "It's a bit bittersweet for my father. He has put his heart and soul into the business. He is 75 in October and Rimstock is the reason he gets up in the morning, but the company needed substantial investment to move forward in the way we wanted. And, from the family's point of view, it was an offer we couldn't really refuse."

The company currently employs 230 people, mostly at its Ridgacre Road factory, and turns over nearly £17 million a year.

US based investment companies Safanad and Current Capital have bought the business, including subsidiaries in France, Germany and the USA.

They will be aiming to build on the ambitious growth plans outlined last year after Rimstock secured more than £3 million in a regional development grant from the Government. But the business will remain based in West Bromwich.

Steve Lane said: "Entrusting over 30 years of British excellence to the new team here at Rimstock is an immense opportunity to accelerate the company's aspirations - to be Europe's leading alloy wheel manufacturer. Central to this acquisition is the financial commitment made by the new owners which will be fundamental in further developing and expanding the business.

"We have already secured more space close to our West Bromwich facility, and those expansion plans have already been shared with our key customers, who have been impressed with our aspirations."

He added: "In addition to supplying alloy wheels from our West Bromwich based engineering plant, to some of the world's most prestigious automotive marques and aftermarket, on-shoring much needed innovation is pivotal to our future strategy. With over half of Rimstock's trading right here in Britain, the much-needed funding will enable our business to manufacture local to its market, and in doing so remain one step ahead of intense competition from the Far East.

"Together with the RGF funding and our new investment, Rimstock intend to develop advanced manufacturing techniques and processes only currently accessible in Eastern Europe and Asia."

New chairman David Roberts said: "I am excited to work with Stephen Lane, to continue to provide the most advanced automotive wheels to our global customers who are the leading luxury brands in the industry,

"Steve Neal founded and developed a wonderful company. Rimstock now has strong financial sponsors with a wealth of knowledge in the industry."

Craig Kahler, director of private equity at Safanad, added: "We are delighted to team with Current Capital, who has had substantial experience and success in automotive investing and board service. I am very pleased that Glenn Mercer, an advisory board member at Current Capital and former partner - automotive at McKinsey, and Jonathan Foster will join the Board of Rimstock.

"Safanad very much looks forward to its partnership with Current Capital and David Roberts, as we help Rimstock leverage its history and capabilities to become an even stronger supplier to global automotive manufacturers."

And Jonathan Foster, founder and a managing director of New York-based Current Capital, said: "We are excited to join Safanad, David Roberts and the entire Rimstock team to help accelerate growth. This is our firm's second automotive investment; we have also completed a number of management services projects in this sector. "Rimstock's strong brand and commitment to new technologies, along with the increasing importance of wheels to differentiate automobiles, positions the company well for continued success."

The new owners and their growth plans have been welcomed by the Rimstock workforce.

Jude Reynolds, who started out as an apprentice at Rimstock 28 years ago and is now purchasing manager, said: "It's absolutely brilliant, and great for the local area. The buzz here is great; it gives us great confidence in our job security and for the business going forward."

Production manager Leon Murray added: "It's a great day for Rimstock. The new owners out outlined their plans to move the company forward and the future is really bright now."