An investor in small and medium sized businesses has acquired engineering firm Electrobase for nearly £4m.

Chelverton Asset Management bought the Dartford-based sheet metal work firm through its Investor Club, a scheme launched in June last year to invest in companies with high potential to grow.

The club raised £2m from its wealthy members for the £3.9m acquisition, which was added to by its investor partner Chrysalis VCT.

Electrobase specialises in a metal-forming technique known as aluminium salt bath dip brazing. Its clients include an array of blue-chip firms in the telecommunications, electronics, defence, specialist automotive and aerospace industries.

It is expected the investment will allow the company to expand into aerospace sector, where incoming chief executive Tim Harrison has significant experience.

Chelverton Asset Management director David Hart said: “We worked with Tim Harrison to source this investment off-market, gaining the confidence of the current management team, who will all remain with the business going forward and are re-investing.

“The combination of their expertise in the very niche dip-brazing application, allied to Tim’s contacts and sales and marketing experience provided a compelling proposition for our investors.”

Mr Harrison said: “Our over-riding strategic thrust is the creation of a business which is truly world class in its chosen sectors and the development of the business over the next five years.

“We have a highly capable management team to make that possible and believe the business can deliver a turnover of circa £10m in that timeframe, with sustainable profits and strong cash flows.”

Supporting debt finance was provided by Santander.