1st Choice Accident Repair Centre, one of the UK’s largest motor vehicle repair facilities, has completed a management buy-out (MBO) part-funded by an investment of £600,000 from UK Steel Enterprise. The transaction marks a successful exit for the Development Bank of Wales exactly eight years after supporting the company’s original MBO in 2018.
Based on Ipswich Road in Cardiff, 1st Choice has expanded significantly in recent years, including the opening of a 30,204 sq ft flagship facility in 2022 following a £975,000 Development Bank loan. The business now employs 37 people and has grown into a £5 million operation serving insurers, OEMs and customers across the region.
The newly completed MBO sees Executive Chairman Mervyn Ham — formerly Non‑Executive Chairman and principal advisor to the deal — lead a strengthened management team with deep operational and industry expertise. The structure maintains continuity by retaining founding MBO lead Mike Summers, who brings over 45 years’ sector experience and now becomes Senior Advisor to the Board while retaining an equity stake.
Eight employees become shareholders. Joining Mervyn Ham and Mike Summers on the Board are Calum Young, part of the original 2018 MBO team, along with Matthew Willecome, Joe Callaghan and Natalie Willecome. All bring substantial expertise in vehicle repair operations, commercial performance and organisational leadership.
Commenting on the deal, Mervyn said: “1st Choice operates in a sector facing well‑documented pressures — rising repair costs, increasingly complex vehicle technology and the need for continuous investment in skills and performance standards. The business has consistently positioned itself at the forefront of these challenges through investment, strong governance and a commitment to high-quality repair excellence.
“Eight years on from the company’s first buy-out, today’s milestone signals continuity, confidence and a broader ownership model designed to support long-term resilience and growth.
“As a shared‑ownership model, this deal blends the engagement and loyalty often seen in employee‑owned firms with the discipline and performance focus commonly associated with private equity-led structures.
“The Development Bank has been an excellent partner over the past eight years, providing equity, debt and property finance that has helped drive 1st Choice’s growth. This MBO represents the next chapter — an opportunity for the management team and our employee shareholders to build on strong foundations and take the business forward with real ambition. Most of the team started as apprentices, and we are now fully committed to supporting them as owners.”
Mark Halliday of the Development Bank of Wales added: “Our relationship with 1st Choice spans eight years and reflects the full breadth of what the Development Bank can offer — from equity to debt and property finance. The team has grown the business into a market‑leading operation, and this transaction marks a strong and successful exit for us. We’re proud to have supported their journey and wish the new management team every success as they take the business forward.”
Michelle Noble, Area Manager at UKSE, said: “We’re delighted to support the management buy‑out at 1st Choice Accident Repair Centre. The team has demonstrated strong leadership, a clear growth strategy and an unwavering commitment to high‑quality service. Their continued investment in people, technology and operational excellence has positioned the business as a leading repair centre in the region.
“This transaction represents exactly the type of ambition UKSE aims to back — a skilled local team building a resilient, future‑focused business with long‑term potential. We’re proud to play a part in their next chapter and look forward to seeing the company continue to grow and contribute to the local economy.”
