Cornwall-based resistor manufacturer Arcol UK has been bought by its management.
The Truro firm, which makes power resistors for the power generation and power supply markets was bought for an undisclosed sum by managers Michael Pritchard and Alun Morgan.
The deal was financed by the Royal Bank of Scotland.
Pritchard said: "Taking the decision to go down the MBO route was a big step, but the deal not only provides continuity for Arcol to build upon its established reputation in world markets, but also secures the future for our highly skilled and dedicated workforce here in Cornwall."
The company, which has been in operation since 1952, employs 47 people. It exports to more than 70 countries.