A buy-out of Cardigan-based Arjay Factors funded by the Development Bank of Wales has given young entrepreneurs Danny and Lowri Grota the opportunity to take on their first business venture.

The couple, who are both 27 years old and expecting their first baby imminently, have purchased Arjay Factors on the Pentood Industrial Estate in Cardigan.

Danny is a fully qualified mechanic and Lowri is an experienced office manager and administrator.

Arjay Factors provides car, van and 4x4 mechanical parts direct to the public and local garages.

It is a successful auto-parts business that has been owned and managed by John and Sharon George for over 20 years.

All four employees will be retained by the business.

Danny and Lowri Grota said: “We’ve both worked locally on the Pentood Industrial Estate for several years so have known Arjay Factors well and always had a good relationship with John and Sharon who have worked hard for over 20 years to build the business.

“The time had come for them to step-back and enjoy the fruits of their labour. We saw an opportunity to step-in so we approached them and we then spoke to PJE Accountants who introduced us to the Development Bank. It’s a big step buying your first business so the support from the Development Bank and JCP as our legal advisors was very reassuring. We are excited for the future and looking forward to developing Arjay in the years ahead.”

Sally Phillips is an Investment Executive with the Development Bank. She said: “Our funding has enabled the previous owners of Arjay Factors to realise their value in the business while creating an excellent opportunity for this young couple to use their skills and knowledge to begin their own journey as business owners. We wish them every success.”

Zoe Fletcher, an Associate Solicitor with JCP Solicitors said: “I’m so pleased for Danny and Lowri and glad we were able to work with them on the purchase of a local business. I wish this ambitious couple every success with this next exciting chapter.”

The loan for Arjay Factors came from the £500 million Wales Flexible Investment Fund. Financed by Welsh Government, the Fund is for deals between £25,000 and £10 million. Loans, mezzanine finance, and equity investments are available for Welsh businesses with terms of up to 15 years.

The Development Bank of Wales funds businesses that it thinks will benefit Wales and its people.

With its loans, Banc says: “Our flexible business loans can support the full business lifecycle from start-ups and growing businesses, to succession transactions including employee buy-outs. We also offer specialist funds for tourism businesses and certain town centres, which can be combined with Welsh Government grants. Our loans range from £1k to £10m over terms of up to 15 years.

“We finance responsible businesses - those with a strong social, ethical and environmental standards, as well as real commercial promise.”

To find out more about the Welsh Government backed scheme, visit https://developmentbank.wales