A Preston-based mechanical and electrical engineering services provider is poised for organic and acquisitive growth after its management bought the business.

T Jolly, which has been trading for more than 100 years and today generates a £20 million turnover, changed hands for an undisclosed sum in a deal backed by NBGI Private Equity.

The buy-out was led by Mark Gordon, who becomes chief executive following the acquisition of the business from the husband and wife team who have managed it for almost 30 years.

NBGI’s investment was led from its Manchester office by director Joseph Bergin, who declined to reveal the amount invested, but conceded that the private equity firm has taken a majority shareholding in the business.

Gordon was joined in the deal by managing director George Jackson and head of finance Sue Lea. The buy-out team also included Joe Turner and John Slater, the company’s heads of installation and maintenance respectively.

NBGI funded the deal from its £100 million second fund, with debt provided by Swedish bank Svenska Handelsbanken.

Gordon said he intends to grow the business in the northwest. “The management team are delighted to have been given the opportunity to take T Jolly forward as an independent business. NBGI has provided strong support throughout the course of the deal and we are looking forward to working closely with them to deliver our strategy in the coming years.”

Bergin, who joins the board under the terms of the funding agreement, added that T Jolly has a strong position in the northwest. “We look forward to supporting management in its plans to take the company to the next level.”

The deal was project managed by BDO Stoy Hayward, which also managed the financial due diligence on the target business. The vendors were supported by accountant Tenon, while NBGI received legal advice from Halliwells with the buy-out team advised by Burges Salmon.

T Jolly, which also has sites in Blackpool, Bolton and Wigan, provides its services to the public and private sectors. It designs and installs heating, ventilation, electrical and air-conditioning systems for new buildings and refurbishments, as well as maintenance and emergency response services to property owners.