Firm with Ashington HQ seals cool deal

Posted by The Journal on Oct 29, 08 11:52 AM in News

AN ASHINGTON electronics cooling system group is looking to grow after a management buy-out secured its future.

Thermacore, which employs 65 people at its European headquarters at Ashington and about 110 in the US, had been for sale on the open market for a year.

A ÃÂ£6.5m management buy-out, led by executives in the US, bought the business from US group the Modine Manufacturing Company, which had owned it since 2001.

Thermacore Europe managing director Jim Yates said: "It secured our ownership. Potentially the business went through an uncertainty about who our owners would be.

"As a management team we work quite closely together. I was involved in the process, but not the buy-out."

The buy-out was led by the US arm of the group in Lancaster, Pennsylvania, which said being independent would let the business return to its roots.

Thermacore president Jerome E Toth said: "Thermacore is intent on restoring the entrepreneurial spirit and smaller-market strategy that made the company so successful last decade.

"We're excited about getting back to our roots as an independent firm focused on effectively supporting our customers."

Head of Modine's commercial products group Tom Cromwell said: "We recognised that the Thermacore business would be better positioned as a standalone company, allowing its management team to focus in the electronics cooling market." Thermacore, set up in 1970, makes cooling systems for sectors including the military, aerospace, computer, communication, medical and car industries.

At Ashington, workers design and develop cooling systems for original equipment manufacturers such as Nokia, Siemens and Alcatel.

Thermacore Europe's pre-tax profits rose 18% to ÃÂ£630,507 in the year to the end of March, on turnover of ÃÂ£4.48m, slightly down on the previous ÃÂ£4.5m.

The business said the slight drop in turnover was due to a major customer postponing production to the following year. But it said an upturn in business and new opportunities meant this had had no significant impact.

Mr Yates said: "Our sales are continuing to grow and this year is a record sales year for us. While we went through this process, the business continued to grow and today remains quite strong.

"Uncertainty in the economy is making everyone cautious and while our business is quite strong, we are cautious at the moment."

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