Victoria PLC acquires Interfloor Group
Victoria PLC has acquired Rossendale based Interfloor Group, the UK market-leading manufacturer of carpet underlay and related accessories. The Board of Victoria believes the acquisition will continue the Victoria’s strategy of pursuing growth through earnings enhancing acquisitions and enable Interfloor to deliver strong longer term growth as part of the enlarged Group.
Victoria PLC became BGF’s first investment in a publicly listed company in September 2014.
For the year ended 30 May 2015, Interfloor recorded net sales of £72.29 million and EBITDA of £10.02 million.
Geoff Wilding, Chairman of Victoria PLC commented:
“We believe that Interfloor, as the market-leader, will be an excellent addition to the Group, bringing the complementary established underlay brands of Tredaire and Duralay in alongside our growing portfolio of well-respected carpet and hard-flooring brands. In the UK, Interfloor and Victoria share many of the same customers and there will be significant opportunities to capitalise on this.
“In line with our other recent acquisitions, the Acquisition will be materially earnings enhancing and value creating for shareholders. Working in conjunction with the very experienced operational management team at Interfloor, we expect to be able to drive operational efficiency improvements in future years.
“In the Board’s view this is another high quality acquisition and we are pleased to welcome Interfloor to the Group.”
Simworx is a designer and supplier of advanced media-based theme park attractions. Established by Terry Monkton and Andrew Roberts in 2005, Simworx created the Angry Birds 4D cinema at Thorpe Park for Merlin Entertainments and was again chosen by Merlin to develop and deliver one of the main attractions at Shrek’s Adventure theme park, which opened in London in July. The ride is based on Simworx’s proprietary Immersive Tunnel, where guests board a themed motion simulator and are surrounded by a 360 degree, 3D cinema screen and immersed in lighting, sound, smells and weather effects.
Simworx’ first Immersive Tunnel ride, The Lost Temple, was delivered to Movie Park Germany in May 2014. Since then the business has secured further Immersive Tunnel orders and has been in talks with theme parks in the UK, US, Asia and the Middle East, where there is a trend towards media-based attractions that are cost effective, flexible, and offer visitors an indoor option.
Simworx designs, assembles and delivers its turn-key solutions, with 75 percent of its suppliers for component parts located within 25 miles of their headquarters.
Simworx used part of BGF’s £4.5m investment to acquire RoboCoaster, the game-changing innovator behind some of the world’s most successful theme park rides. Warwickshire based RoboCoaster is led by Gino De-Gol, an internationally recognised developer of Intellectual Property for the use of passenger carrying robotic technology and trackless dark rides. The acquisition will combine RoboCoaster’s pioneering robotics capability with Simworx’s Motion Simulation and Audio Visual experience.
The funding is also being used to double the size of Simworx’s production plant in Kingswinford, increase its demonstration facilities and bring on more staff.
Mike Lloyd joined the business as non-executive chairman. Mike has more than forty years’ experience in engineering, manufacturing and supply chain roles in the electrical machinery and power sectors. His senior leadership roles have included group manufacturing director and President of Rolls Royce Gas Turbines Operations and technical director of GEC Large Machines.
STYLES & WOOD GROUP PLC
In June 2015, BGF invested £3.3m in Styles & Wood Group plc (LSE: STY), the Altrincham-based integrated property services and project delivery specialist, to support its long term growth strategy.
BGF invested alongside Henderson Volantis which also committed £3.3m to Styles & Wood for a minority stake in the business.
The co-investment brought two high quality institutional investors onto the Group’s share register and in doing so, helped the business to accelerate its growth objectives by strengthening the company’s balance sheet and providing a more appropriate capital structure. In addition, BGF’s investment allowed the Group to continue its diversification strategy and take advantage of growth opportunities available to it including, possibly, acquisitions of other businesses.
This was BGF’s second investment in a publicly listed company, having backed AIM-listed carpet and floorcovering manufacturer Victoria plc, which is based in Kidderminster, in September 2014.
Styles & Wood provides a range of property services to retail, banking, commercial and public sector clients. The Group’s services include design, building intelligence systems, renewable energy solutions and project delivery. Operating nationally from its head office in Altrincham, the business has regional offices in London, Nottingham and Lancaster and employs 285 people across the UK. Clients include Tesco, Waitrose and Barclays.
BGF is backing a strong management team led by Chief Executive Officer, Tony Lenehan, who was appointed CEO in January 2011. He joined from Bovis Lend Lease where he held executive responsibility for the company’s regional construction business. Previously he held the role of Managing Director for Carillion’s national building and integrated property solutions businesses. Matt Widdall will join the Styles & Wood Board as Non-Executive Director on behalf of BGF.
BGF invested £2.9m in Walsall-based Brownhills Investments in March 2015 to support the growth aspirations of its principle subsidiary Brownhills Glass with the acquisition of Durham-based Peterlee Glass, helping to extend its presence into the North-east.
Brownhills Investments was formed in 2012 following a buyout of Brownhills Glass, a name well known in the Midlands since 1977. Brownhills Investments is run by Executive Chairman Nick Harrison, Mark Harrison and Tim Price. Nick is the former group marketing and business development director of Fenner PLC and managing director of Fenner Dunlop. Brownhills’ specialises in bespoke glass processing according to the specifications of architects, builders, interior designers and private home owners in addition to providing glass merchanting services to independent DGU manufacturers.
Peterlee Glass, also set up in the late 1970s, has become one of the North’s leading processed glass suppliers and manufacturers, with a strong reputation for quality and service having worked on projects including Fenwicks of Newcastle, The Sage Gateshead and The British Museum.
Brownhills Investments now has operations in four locations across the UK, meaning it can offer a local service to customers with national requirements. In May 2013, the business started Wiltshire-based Corsham Glass Centre, and teamed up with Chelverton Asset Management in April 2014 to buy Crawley-based Tufwell Glass, whose recent projects have included London’s Shard and the Olympic Park.
Gurinder joined BGF in June 2011 and is based in Birmingham. His main role is to identify and successfully execute investments. He has ongoing board responsibility for a number of those transactions. Gurinder also heads up the AIM initiative in the Midlands and has led the first two AIM investments that BGF has completed.
Prior to this Gurinder worked in the mid-market corporate finance team at BDO providing corporate finance and M&A advisory to clients across numerous sectors including manufacturing, support services, building products and TMT. Gurinder started his career at KPMG working in the financial services and transaction services practices.
Gurinder is a chartered accountant with the ICAEW and holds a BSc (Hons) in Money, Banking and Finance from the University of Birmingham.
“What excites me most about my role at BGF is the privilege of interacting with a wide variety of entrepreneurs across a diverse range of sectors and business models, and I try to bring the same passion they display and the knowledge I gain into my own efforts to complete investments and subsequently support a portfolio company’s growth.”
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BGF backs Midlands based Shuropody to expand its national footprint
Midlands based Shuropody is the UK’s leading specialist footcare provider with local branches in Birmingham, Coventry, Leamington Spa and Stratford-Upon-Avon within its 63-strong national network.
In September 2012, BGF invested £3 million of growth capital in Shuropody to enable the company to expand upon its current garden centre based sites, as well as the introduction of new community service locations. It is expected this will generate another 200 jobs over the next three years.
This investment was led by BGF’s seven strong Birmingham team and is its third investment in Midlands based businesses to date.
BGF’s ability to structure investments flexibly to best meet a particular company’s financing needs enabled it to split the £3 million growth capital investment into £1.5 million of ordinary shares and £1.5 million of loan notes.
Shuropody delivered sales of £15.8 million in the year ending 31 December 2011 and is expecting sales to double over the next 3 years. Headquartered in Coventry and founded in 2007, Shuropody offers podiatry services and comfort-focused footwear products. Initially opening a handful of stores in 2007, the company grew rapidly following its purchase of 43 stores from Boots, in July 2008. The business now operates from 63 standalone stores and concessions across the UK and is the second largest provider of podiatry services behind the NHS, with 400 employees, of whom almost 150 are medically qualified podiatrists.
Shuropody was founded by Managing Director Frank Duffy who has been involved in the manufacture and retail of footwear and general clothing since 1978. He previously spent four years as Group CEO of R Griggs Group which famously produced Dr. Marten’s shoes. Gordon Horsfield acts as Non-Executive Chairman and was previously Chairman of Drax Group Plc where he led the restructuring programme before listing the business on the London Stock Exchange in 2005.