Managers buy Morley Electrical from Bullough

A management team, led by Mike Wedgewood, has bought the motor manufacturer Morley Electrical Engineering from its former parent, Bullough. The deal values Morley at more than £5m.

Morley, founded in 1897, produces robust, flameproof motors, mainly for the mining industry. Its other products include water-cooled motors, pump rotors, and permanent magnet generators. It employs more than 100 people at its bases in Leeds and Bradford.

In an attempt to reduce its dependence on the global mining industry - which currently accounts for about half of its sales - Morley`s new management team is looking to expand its activities in the oil, gas and water treatment industries.

As well as Wedgewood - a former managing director and acquisitions expert with FKI - the buyout team includes existing managing director Terry Williamson, financial director Phillip Kellet and commercial director Neil Stewardson.

Lloyds TSB has invested £1.7m in the company under a deal arranged by the corporate finance consultant Invex.

Morley is not abandoning its traditional flameproof business. "World coal production and prices are predicted to rise, and barriers to our markets are high," Williamson points out. "Our initial inroads into the US have been very successful and we will be looking to spearhead continued growth there."