Engineering news
A private equity group has bought the Millbrook automotive testing ground in Bedfordshire.
London-based investors Rutland Partners is best known as a turnaround and restructuring specialist. Its most recent deal saw it buy into the Bernard Matthews turkey business.
Rutland Partners' website says that that it invests in businesses that have great potential “but are trapped in negative thinking or the wrong ownership structure”.
Millbrook was owned by General Motors. However, the US carmaker has increasingly focused its investment and testing activities at the Vauxhall / Opel Dudenhofen facility in Germany.
Under Rutland's ownership, Millbrook will be led by Miguel Fragoso, chief executive. John Notman-Watt will be appointed executive chairman on completion of the deal, which is expected to take place in early December.
GM will remain a customer of the business post completion with both parties entering into a number of long-term supply agreements.
David Wardrop, investment director at Rutland, said: "Millbrook is a unique asset operating in a number of attractive markets driven by tightening regulations notably in fuel emissions and vehicle safety. The business has a strong reputation within the markets it serves and we are excited to support the team and invest further in the business as it transitions away from its current ownership and develops into an independent test and engineering business.”
The 700 acre Millbrook site is widely viewed as one of Europe’s most advanced centres for the development and demonstration of vehicles, from motorcycles and cars to heavy commercial, military and offroad models. The site employs more than 300 people, many of whom are engineers. It features a range of test tracks including a high-speed circuit, a city-handling track and a hill route.
The facility also boasts laboratories for activities such as crash testing, emissions monitoring and the replication of harsh environmental conditions.
The Millbrook sell-off comes as General Motors centres more of its testing activities in Germany. It is to invest €230 million over the next four years in new facilities at its European product development centre in Rüsselsheim and at its proving ground in Dudenhofen.
At Rüsselsheim, new dynamometers for engines will replace older equipment to allow for development of powertrains for 2020 and beyond. Flexible test cells are being installed to enable improved operational efficiencies. These laboratories will be linked to GM’s powertrain facilities in Pontiac, Michigan and Turin, Italy.
The proving grounds at Dudenhofen are to gain new capabilities, such as a soak area, workshop and vehicle dynamometers for important ultra-low emission testing. This globally common GM equipment allows similar test procedures and comparable data.
GM said: “The investment into Opel’s design, vehicle engineering, powertrain operations and human resources further demonstrates GM’s commitment to enhance the local capability to position Opel and its sister-brand Vauxhall for long-term competitiveness and success.
“With the additional technical resources, Opel and Vauxhall will continue to play an important role in designing, engineering and building new vehicles and powertrains for its own brands as well as other players in GM’s product portfolio.”