Foresight invests £2.5m in Sprint Electric
02 May 2023
LEADING REGIONAL private equity and infrastructure investment manager, Foresight Group has invested £500,000 through the Midlands Engine Investment Fund (MEIF), alongside £2m from its VCTs, into Sprint Electric. The investment will enable the final development and commercialisation of a new range of variable speed drives for the AC motor market.
Sprint Electric designs and manufactures drives for controlling industrial motors. The investment will enable the final development and commercialisation of a new range of variable speed drives for the AC motor market, with power regeneration capability that increases energy efficiency. The new product will also provide access to the large AC VSD market – estimated to be valued at £16b per annum.
Sprint Electric has worked with the University of Nottingham as part of a Knowledge Transfer Partnership – a UK-wide, part grant-funded scheme helping businesses of all sizes to innovate using the knowledge and expertise of UK universities. The Company currently employs 18 people and in 2022 reported £3m in sales. Working with Foresight, Sprint Electric plans to use the investment to scale its operations and drive growth.
At investment, Tim Routsis will join the board as non-executive chair. His background includes 10 years as managing director of automotive engineering company Cosworth and eight years as CEO of Cox Powertrain. His expertise will help the company grow and significantly increase its market share.
Commenting on the investment, Gary Keen, co-managing director of Sprint Electric, said: "We are excited to work with an investment partner who shares our passion for green energy and understands the potential of the drive technology we have developed with our colleagues at the University of Nottingham. We welcome the appointment of Tim to the board and the wealth of experience he has in leading cutting-edge engineering businesses. This will be invaluable as we commercialise the new product range, expand our operations footprint and accelerate our sales growth."
Hugh Minnock, investment director at Foresight, added: “It is great to support Sprint Electric as they look to bring a new product to market. With our investment and support, the team will be in a great position to benefit from the potential market opportunities. We look forward to working with Mark, Gary, Tim and the rest of the team to enable the next phase of their growth.”
Routsis concluded: “I am delighted to join the Sprint Electric team at such an exciting time in the Company’s history. With Foresight’s support, Sprint Electric is in a good position to bring new products to market. This will materially grow the business, which already has an impressive export record.
The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.