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Electrical wholesaler plots further growth after buy-out backed by Mercia

Press release 22 January 2025

Hull based electrical wholesaler has undergone a seven-figure management buy-out backed by funding from Mercia Debt.

A portrait of the team from AA Jones electric

Hull based electrical wholesaler has undergone a seven-figure management buy-out backed by funding from Mercia Debt.

AA Jones Electric, which was founded in 2009 and is now one of the region’s leading independents, supplies electrical equipment for domestic and commercial use, as well as industrial automation and controls.

The buy-out gives control of the business to co-founder Andy Moulds, the Sales Director, and long-standing employee Sam Lomax, who becomes Managing Director. It will allow for the retirement of one of the founders, Ian Wayman. The third founder, Tony Moore, will retain a stake in the business and continue in his role as Finance Director.

The company has secured a £1m funding package, with half coming from Mercia’s SME Loans fund to support the buy-out.

NPIF II – Mercia Debt Finance, which is managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II), also provided £500k to support the growth of the business following the management buyout.

AA Jones employs 20 staff at its premises on Venture Business Park and serves both the public and trade buyers. The company acquired an adjoining distributor, Seltec Automation, in 2022 which is now fully integrated. It currently stocks over 12,000 product lines and offers specialist advice on factory automation or for projects required to meet building or health and safety standards.

Having recently introduced new lines such as solar lighting, EV chargers and smart building technology, it now plans to further extend its range of renewables and industrial cables. The funding from NPIF II will provide additional working capital to enable it to increase stock levels and create around five new jobs in the next two years.

Sam Lomax, Managing Director, said:

Tony and Ian have built a very successful business with a dedicated and experienced team. Having joined the company 13 years ago, I am very grateful for all the support and opportunities they have given me. I am proud to be taking on the role of Managing Director and look forward to working with Andy and the team as we continue to grow the business.

Rebecca Pickering and Mike Rogers of Mercia Debt worked on the deal. Rebecca Pickering said:

AA Jones is well respected in the industry. It sets itself apart from the big chains by its customer service and knowledgeable staff and despite tough competition, has continued to grow revenues. We are pleased to have been able to be able to support the buy-out and provide funding for its future growth plans.

Pierce Business Advisory and Accountancy Group of Blackburn provided corporate finance advice to the company, while WHN Solicitors of Rossendale provided legal advice.

Paul Bennett of Pierce said: 

It was a pleasure to work with the team at AA Jones to structure a transaction that allows the management team to take the business forward and we look forward to seeing the business continue to grow over the coming years.

Lizzy Upton, Senior Manager at the British Business Bank, said:

The future of the electrical industry is bright, with the likes of solar lighting and EV growing in popularity amongst consumers. It is great to see Yorkshire & Humber businesses like AA Jones Electrical making use of NPIF II funding to capitalise on this, supporting its future growth and supporting the Northern economy.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Further Information

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Notes to editors

About Mercia Ventures

Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.  

Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic "MERC".

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic "MERC" and includes the following wholly owned subsidiaries -

  • Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
  • Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
  • Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560

Find out more on Mercia UK

About the Northern Powerhouse Investment Fund II

  • Operated by the British Business Bank, NPIF II provides a mix of debt and equity funding. NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development. 
  • The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Greater Manchester, Lancashire, Cheshire & Warrington, Cumbria, Liverpool City Region, Leeds City Region, South Yorkshire Combined Mayoral Authority, York & North Yorkshire, Humber and East Yorkshire, Northumberland, County Durham, Tyne & Wear
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). 

Find out more on the Northern Powerhouse Investment Fund II.

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