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December 11, 2024
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Greater Manchester’s SGH Moulds acquired by the Jalex Futures group in the first full acquisition by the investment firm.

SGH Moulds Ltd is a plastic injection moulding firm that provides a full range of services including tool design and manufacturer, and plastic injection moulding on presses up to 360 tonne.

With five manufacturing, design, tooling, post production assembly and injection moulding sites across Bolton, SGH Moulds is an established full service manufacturer in the North West. Founded in 1978, SGH Moulds started life as a family firm by father and son Kevan and Stephen Howarth, and later joined by sister Lynn Farrell.

It has grown from strength to strength and is now a supplier to numerous international businesses and household names in sectors such as automotive, medical and industrial.

“The acquisition of SGH has been a seven-month process from first meeting to completion. We’re delighted to welcome SGH into our portfolio which includes five other minority stakes in firms ranging from SaaS providers to a restaurant chain. British manufacturing is an exciting industry and we believe SGH is a wonderful platform for future growth” says Jalex Futures CEO, Peter Thompson.

“I’m also pleased to simultaneously announce the appointment of new Managing Director Martin Jones, a thirty-year veteran of the industry. Whilst both Stephen and Lynn are committed to supporting the business for years to come, Martin’s appointment allows them to start enjoying a well-deserved retirement.”

Outgoing MD Stephen Howarth commented “I’m delighted to see SGH Moulds continue with fresh management, ideas and capital. I want to thank our staff, clients and suppliers for decades of support and commitment in making SGH the business it is today.”

Thompson started Jalex Futures Ltd in October 2023 after the sale of the business he founded, CanTrack Global Ltd in 2021 to the British private equity backed Radius Group. “My own exit showed me the challenges in selling an SME, going through one of the most important processes in your life with limited understanding of how it works. Often too small for PE, a tiny percentage of businesses ever sell and typically a trade sale or private buyer if they do.

I chose to focus on high growth businesses in a range of industries for minority investments, and target retiring business owners of established businesses for acquisitions. Succession planning is incredibly challenging for several reasons in SME’s and Jalex Futures understands the mindset, challenges and needs of those businesses exceptionally well.

I tend to think that younger founders whose challenges lay outside of retirement often have better options than to sell, and this forms part of the advice we provide companies from our experience. The challenge is often one of losing enjoyment from running the business, and this is often around how the owner is involving themselves in it.

Retiring owners have different challenges, there might be a lack of willingness or ability for family to take on the business. Often, it’s a practical need to get their inheritance planning in order, something the recent budget has brought into focus by bringing businesses into the scope of IHT. Planning for and exiting prior to retirement or passing, turns an illiquid asset into capital at the best value whilst the owner is present in the business.

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