Former Defence Secretary Ben Wallace Joins Advanced Innergy Holdings Board
Sir Ben Wallace, previously the UK’s defence secretary, has been appointed as a non-executive director at Advanced Innergy Holdings, a rapidly expanding materials technology company. His expertise is expected to enhance the firm’s efforts in securing additional contracts in the defense sector.
Wallace, who was pivotal in orchestrating the UK’s response to Russia’s military actions in Ukraine, joins the Gloucester-based firm, which specializes in supplying insulation and fire protection materials. These materials are integral to operations in oil, gas, and renewable energy industries, as well as being utilized in British submarines.
This appointment has sparked fresh discussions regarding the revolving door of former government officials transitioning to private sector roles, utilizing their political connections for corporate gain.
The trend includes various former Conservative ministers taking positions in the private sector, such as Penny Mordaunt advising British American Tobacco, Chloe Smith consulting for PA Consulting, and Alex Chalk partnering with the US law firm Jones Day. Additionally, former cabinet minister Michael Gove has taken on the role of editor at The Spectator.
Wallace resigned from his role as defence secretary in 2023 after serving four years and subsequently became a partner at Boka Capital, an investment firm focused on military technology.
The advisory committee on business appointments, which oversees such transitions, has reviewed Wallace’s integration into the company. It generally recommends that former ministers abstain from lobbying government entities on behalf of new employers for two years following their last day in office.
In discussing his new role, Wallace expressed excitement about joining Advanced Innergy Holdings, noting, “AIS is a remarkable UK success story… providing crucial protection for strategic industries worldwide through its market-leading solutions.”
AIS is involved in safeguarding critical infrastructure, spanning gas turbines to offshore wind installations and subsea cables, while also prioritizing the safety of personnel working on such projects.
In the past year, AIS has experienced notable growth, posting pre-tax profits of £6.7 million from revenues totaling £136.8 million. The firm is projected to surpass £150 million in revenue this year, with 80% derived from exports. It currently employs 750 staff, with 540 in the UK.
Russell Ward, chairman of AIS, highlighted Wallace’s vast knowledge of the defense sector and geopolitical climate as invaluable assets as the company seeks to expand into new global markets.
Wallace, a former Scots Guards officer, has been an MP since 2005 and has experience in business development at Qinetiq, a UK defense specialist. He had been providing informal guidance to AIS prior to his official board appointment.
A spokesperson for Advanced Innergy Holdings confirmed that the company received positive feedback from the Whitehall appointments committee regarding Wallace’s integration into the firm.
In a pre-appointment interview, Andrew Bennion, CEO of AIS, mentioned the firm’s founder, Simon Shepherd, shares a social connection with Wallace. Bennion stated, “With the increase in defense spending and Ben’s insights into the sector, he will guide us effectively, especially given his expansive network, which is advantageous for our growth.”
Additionally, Bennion’s management team, which acquired the firm from private equity firm Growth Capital Partners last August, clarified that Wallace’s appointment does not suggest any future investment from Boka Capital.
“We are fully committed to being management-owned and aim to maintain this structure in the foreseeable future,” Bennion added.
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