ECI the winner in race to take a minority stake in Harvard

The investment will allow the 20-year-old Yorkshire company to create 200 new jobs, expand its range of control products and build a state-of-the-art research and development and manufacturing facility.

The value of the deal was undisclosed. The sale attracted a large amount of interest from private equity houses with funds to invest in high quality businesses.

John McDonnell, founder and managing director, said: “The investment is wonderful news for Harvard, as it will allow us to strategically build on our already growing market share and international presence. Despite the deep recession, demand for our products continues to grow across the globe.”

The company has stayed ahead of its rivals by investing heavily in R&D. Its products include Leafnut, the award-winning wireless control and monitoring system for street lighting, and the newly launched EyeNut, an indoor lighting control system.

The £26m-turnover company has outgrown its home in Normanton and plans to create its new facility at a site nearby.

Harvard has an international presence at offices in France, Italy, Germany and the United States.

Mark Keeley, investment director at ECI, said: “As a growth-focused investor we look for businesses which have strong management teams who have driven growth despite the global recession and, in particular, have expanded successfully overseas.

“Harvard ticked all our boxes. We are excited about working with John and his team to help the business continue its global expansion.”

Barclays provided a small amount of debt in the deal.

Park Place Corporate Finance was lead adviser on the transaction. It said: “John McDonnell has built an exceptional business that is well placed to participate in the LED revolution which is taking place in the lighting industry.”