The specialist engineering business has received a £6.4m investment from Business Growth Fund to support its expansion across the UK and Europe.
Founded by Managing Director Kevin Johnson in 1999, the Halifax-headquartered company installs, refurbishes and repairs escalators.
With a team of 85 engineers and technical staff, Northern Escalators has been contracted by high-profile clients, including escalator installation at Liverpool’s Anfield Football Stadium and Paddington Station, as part of the London Underground.
In 2016, the group generated revenues in excess of £12m.
Northern Escalators has been winning a growing number of contracts in mainland Europe and established a second base there earlier in 2017.
The group now has offices in both Germany and Sweden to service a large and growing customer base.
Kevin Johnson, Northern Escalator said: “we have attracted and retained a first-class team of engineers, which alongside our focus on quality, has helped us build a solid reputation and take on very technical projects.
“BGF’s long-term minority investment will allow us to press forward with our growth plans while retaining control of the business. We look forward to working with the BGF team, and welcoming Stuart Black to the board.”
Northern Escalators will use BGF’s funding to expand its services which, in addition to installation and maintenance, include storage, design, build-up, transportation and modernisation.
The business works closely with major escalator and lift manufacturers including Kone, Schindler, Otis and ThyssenKrupp, and is well placed to capitalise on the increase in commercial and transport infrastructure projects.
As part of the investment, Stuart Black joins the company as non-executive Chair following an introduction by BGF. Stuart is also Chair of BGF-backed TCL, an estate management business, and has been supporting its expansion across the UK. Gareth Judson also joins the board as Operations Director.
In recent months, BGF has backed Yorkshire-based, Filmore & Union, a restaurant and deli chain and provided further investment to Leeds-headquartered, Nationwide Window Cleaning, which has experienced 100% sales growth since BGF’s investment in 2014.
Chris Boyes from BGF added: “Kevin and his team have built a business of significant scale in a niche but growing area.
“Their expertise has enabled the business to become the UK’s leading provider of escalator services, with significant scope for further growth, both in the UK and Europe.
“We are delighted to be supporting the company as they further expand their operations.”