A family owned housebuilder has become the first company in Northern Ireland to secure investment from BGF.
For more than 40 years, Braidwater has been designing and building high quality two to five bed family homes across Northern Ireland, with a strong focus on design and building efficiency. The business is run by founder and Executive Chairman Patrick McGinnis and his son, Managing Director Joe McGinnis.
The growth capital investment will be used to support the development of residential properties across existing sites and provide Braidwater with long term strength to deliver on its commitments, helping it to address the shortage of new build houses in Northern Ireland. Four developments are currently underway at Bedford Meadows, Antrim, Drenagh Park, Limavady, Leighinmohr Crescent, Ballymena and Fort Manor, Dundonald, with two more projects due to commence shortly.
Mike Stansfield, former CEO of David Wilson Homes, has been appointed by Braidwater as an independent Non-Executive Chairman following an introduction made by BGF. Paddy Graham, BGF investor, and Ciaran McGivern, former Head of Business Banking with Bank of Ireland NI, will also join the board of the company. Following the deal, Braidwater’s social housing division will become a separate family company, BW Limited, which will continue to undertake project management and construction in the social housing sector.
VTL SECURES FURTHER FUNDING
VTL Group has received a further £1.5m investment from BGF, alongside loan funding from HSBC. BGF has now committed a total of £5.5m in the business, following an initial investment in September 2013.
The funding will be used for a capital investment programme ahead of commencing an eight year project to supply engine components through Ryobi UK to Jaguar Land Rover (JLR) for use in its new engine platform. This is the first Jaguar engine designed and built in-house since the late 1990s. From its manufacturing sites in Huddersfield, VTL will commence supply of components to JLR’s new £350m factory in Wolverhampton in the second half of 2016.
VTL is one of the UK’s largest precision contract manufacturing businesses within its specific niche areas of turbo and transmission components. The core end users of commercial vehicles and passenger cars are growth markets and VTL is well positioned to capitalise on this with its technical expertise and world-class facilities. Existing customers include Cummins, Toyota, Renault, Nissan, Delphi, Ryobi, JLR and Schaeffler.
15 December 2014
Cussins, a house builder based in the North East, received a £5m investment from BGF in December 2014. The money is being used to support the acquisition of land and the development of up to 300 new houses per year over the next four years, generating 500 jobs.
Peter Cussins, executive chairman, and his son Jabin, chief executive, remain majority shareholders in the Alnwick-headquartered business. For almost a century, three generations of the Cussins family have built more than 50,000 houses in landmark developments across the North East.
After a prolonged period of housing shortage in the North East, the Government’s revised planning framework is helping Cussins take advantage of an increased availability of high quality land in prime locations. With a strong emphasis on housing design that complements local surroundings, the business focuses on smaller developments of between 10 and 70 homes, where there is a high level of demand from buyers.
To support business growth, Cussins appointed Mike Stansfield, former chief executive of David Wilson Homes, as non-executive chairman. Stansfield was introduced to Peter and Jabin Cussins by BGF. Richard Taylor, investment director at BGF, also joined the board. As part of the investment, the business secured a £7m debt facility from Lloyds Bank Commercial Banking, whom it has banked with for over 40 years.
BGF has invested £7.5m growth capital in J&B Recycling, a waste recycling company.
Operating from two recycling facilities in Hartlepool and a waste transfer station in Middlesbrough, J&B Recycling provides waste collection, recovery and recycling services to both public and private sector organisations throughout the North East. Customers include local authorities, housing authorities, commercial, industrial and also other waste companies who use J&B’s facilities to recycle their customers’ wastes. J&B Recycling diverts waste away from landfill by increasing the levels and types that can be recycled and reduces the cost of waste removal for its customers.
J&B Recycling operates in a sector that is subject to strong regulatory growth drivers. Current EU and UK government policy aims to divert as much waste as possible away from costly and capacity-constrained landfill sites, into recycling and recovery.
The company is run by female entrepreneur Vikki Jackson-Smith, who established the recycling business in 2000 to diversify from the solid fuels business that her father Alan Jackson had originally established in the 1970s. Since then, the business has grown to an annual turnover of c. £10m and employs 175 people.
BGF’s growth capital will enable the company to develop an additional recycling facility in Middlesbrough for treating commercial waste, as well supporting further expansion at existing facilities where household waste is treated. Following the investment, non-executive director Ross Smith took on the role of non-executive chairman. Ross was formerly CEO of 3i backed MDC Technology and chairman of CSL Dualcom.
MARK BEADLE JOINS SPRINGFIELD HEALTHCARE
Springfield Healthcare Group has appointed Mark Beadle to the board of the company as non-executive chairman. Mark was introduced to the group’s chief executive, Graeme Lee, by BGF.
Mark was previously chief operating officer at Priory Healthcare Group, chief executive at Capio Nightingale – which operates the Florence Nightingale Hospital – and managing director at Aitch Care Homes (ACH) which was sold in April 2014. He has a wealth of senior experience in operational roles and private equity backed businesses, deep knowledge and contacts in the healthcare sector, and extensive experience of winning national contracts, creating operational efficiencies and delivering significant revenue improvements.
BGF invested £4.4m growth capital in Springfield Healthcare in June 2012. Since then, the business has completed four acquisitions and opened The Grange, a grade II listed care village in Leeds and a supported living project in Hartlepool. The group employs over 1,200 people in the north of England.
Mark Beadle said: “Springfield Healthcare has a good reputation and strong position within the industry. The Grange has performed well since opening in late 2013. The care village model combined with domiciliary care and supported-living services allows Springfield to offer a tailored, high quality and person-centered journey through care in older age. I’m delighted to be able to provide support to Graeme and the management team as they continue to drive the business forward.”
Graeme Lee, group chief executive, Springfield Healthcare Group said: “Mark’s first-hand experience in the healthcare sector will be incredibly valuable as we continue to implement our strategy. With the help of BGF’s investment, we have been growing the business over the past two years, and we’re excited about fresh ideas and strategic advice that Mark brings to the table.”
Recently, Mark jointly founded The Objectivity Partnership to deliver strategy, due diligence and independent business reviews to the private equity industry focussing on the health and social care sector. He has also been a non-executive director of the board of Svet Zdravia, a Slovakian healthcare company.
MODA IN PELLE
BGF has invested £3.5m growth capital in Moda in Pelle, a designer and retailer of women’s footwear headquartered in Leeds, with nearly 60 stores and concessions across the UK.
Following a successful 12 months and with year-end revenues expected to be close to £20m, Moda in Pelle has extended its management team and will implement a strategy for further growth using BGF’s investment. The new capital will be used to accelerate the roll-out of stores across the UK and internationally, as well as enhance the in-store customer experience and support further development of the company’s website and other e-commerce channels. While continuing to focus on quality and affordable luxury, a brand refresh will be unveiled in autumn 2015.
Stephen and Claire Buck – who have been instrumental in growing the business into a national boutique brand of women’s footwear – will remain majority shareholders. Stephen has been at the helm of Moda in Pelle since he founded the company in the mid-1970s with a single store in Leeds.
To implement the growth plan, David Inglis, who has previously advised Moda in Pelle, will join as chief executive and invest alongside BGF. Judith Pilkington – introduced through BGF’s talent network – has also been appointed to the board as non-executive chairman.
David previously held senior roles at Asda and Shop Direct, while Judith is former chief executive of Space NK and has worked at Fenwicks, Selfridges, Harrods and Mappin & Webb.
BGF will take a minority stake and BGF investment director Richard Taylor will join the board as a non-executive director. As part of the investment, the company has also secured an increased working capital facility from Lloyds Bank. The Lloyds team was led by Matt Pollard and Alison Hoyle.
Stephen Buck, founder, Moda in Pelle said:
“Over the past 40 years, we’ve created a tremendous amount of brand capital among a loyal customer base by focusing on quality design and manufacturing. After a particularly strong period of growth, we want to pursue new opportunities to fully exploit the brand’s potential. David has an acute understanding of what we want to achieve, and brings with him energy, determination and strong background in the retail sector. I’m delighted that he will be joining the team.”
David Inglis, chief executive, Moda in Pelle commented:
“We have ambitious goals for Moda in Pelle. Developing our multi-channel offering will be a primary focus over the next 12 months, and we will continue to explore new opportunities with wholesale and internationally.
“The investment from BGF, alongside an increased facility from Lloyds Bank, provides us with the capital to implement our plan. We are excited about the future of the business and recognise that securing the right long-term funding partner is a key step.”
Richard Taylor, investment director, BGF commented:
“We’re backing Moda in Pelle because of the strength and capabilities of its management team and the growth potential of the business. We’ve been impressed by management’s clear strategy for the company, knowledge of the retail sector and understanding of the Moda in Pelle customer.
“Since opening the BGF office in Leeds, we’ve met many diverse businesses with ambitions to grow. Importantly, we only ever take a minority stake which means that the management teams we support – like Moda – are assured that they will keep control of their businesses.”