Mon, 19 Oct 2020 | BUSINESS SALE
Essex-based Mountune, a firm specialising in tuning packages for Ford and Volkswagen cars, has been acquired by its founder David Mountain in partnership with several other investors.
Mountain resigned as a company director in July 2020, with the company announcing in August that it was seeking a buyer or investment partner. It hired KPMG to help it in its search for a buyer or investor to help “recapitalise the business and unlock management’s growth aspirations".
It is thought that the company ran into difficulties after the success of its road car tuning business began to impact the earning-power of the more lucrative side of Mountune’s business: supplying parts and engines for race cars. This was then exacerbated by the impact of COVID-19, which put racing around the world on hold.
Mountain said: “It’s widely recognised that the success of the road car group, predominantly, led to a situation where the demand was outstripping the previous business’s ability to supply and support our customers. COVID-19 simply served to compound the problem further.”
The investment by Mountain and the team of investors has been said to safeguard “a large number of jobs” at Mountune’s Essex facility and raised "the required capital to both protect the brand and secure its future". The acquisition means that Mountune is an independent, UK-owned entity, having been previously connected to several US businesses.
Mountain commented: “It gives me enormous pleasure to be able to secure the brand both now, in its 40th year, and for the future. We can’t wait to get back to supplying and supporting our customers and dealers properly and also embracing new technologies that will enable us to take Mountune forward for decades to come."
The company plans to continue offering tuning packages and modifications for both road and race cars, whilst also looking to begin developing its own electric powertrain technology and release new products. The company says that it will look to produce a “clean, ultra-high performance electric powertrain”.
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