A MANAGEMENT buyout is putting a distributor of leading domestic appliances on the road to significant expansion.

Stylco UK Ltd, of Newton Aycliffe, was formerly owned by global group UEG. It has been acquired by a management team led by managing director Ian Vermeulen, backed by a £250,000 investment from UK Steel Enterprise (UKSE).

The funding from its Equity Growth Fund, backed by the Government’s Regional Growth Fund, has provided working capital for the company, which has already expanded into new warehousing facilities in the town.

Stylco has the exclusive rights to distribute Brabantia products in the UK, Ireland and Europe and handles a range of other leading brands including Masterchef, Nakimichi, Eric Beare and Stylus.

The buyout has safeguarded or created 12 jobs in management, marketing, logistics and warehousing, with more in the pipeline.

Mr Vermeulen said: "We are keen to expand into new areas and have already moved to exploit a gap in the market by meeting demand from smaller retailers. They are showing a strong interest in Stylco and we had a considerable number of pre-orders before a stock consignment had even arrived in the UK."

He was also pleased with the response to their appearance at three recent major electrical trade shows in London, Birmingham’s NECC and Silverstone, and they still have the benefit of a continued strong relationship with the UEG Group, which is one of the leading OEM (original equipment manufacturer) suppliers of consumer electronics and home appliances worldwide.

Mr Vermeulen said UKSE's investment had made a massive difference in enabling it to expand. "We are bringing global brands into the UK and are confident that we will continue to do well in a market that is worth around £779m," he said.

Peter Taylor, of UKSE, said: "Stylco UK Ltd has a highly experienced management team, a strong customer base and real potential for growth."