THE private equity firm which bought a controlling interest in a key division of Cowley-based transport and parts distribution firm Unipart, has borrowed £37.5m to invest in the business.

H2 Equity Partners raised the cash against the existing assets of Unipart Automotive in a deal with lender Venture Finance.

Last month 50.1 per cent of Unipart Automotive was bought by H2 for an undisclosed sum in a move which bosses said secured the future of 200 workers.

Last night Patrick Kalverboer, managing partner at H2 and executive chairman of Unipart Automotive based in Garsington Road, declined to say whether some of the cash had been used to fund the deal but said it would be used as “working capital”.

He added: “I won’t discuss the transaction structure or price – we don’t talk about that.

“The facility is now available for Unipart Automotive and does not have any relation to the price paid.

“It is working capital for day-to-day operations. For a business with sales of £180m it is normal.”

Unipart spokesman Debbie Daly said she was unable to comment.

Mr Kalverboer re-emphaised that it was H2’s intention to grow the business.

He said: “Three major areas of the company will be active before the end of the year. The proposition is improving.”

A total of 200 jobs will be created over two years taking the Cowley workforce to more than 1,200.