Changes at York Mailing
York Mailing, the UK’s largest supplier of print material to the retail sector and one of the first Northern-based businesses backed by BGF, has announced new investment and changes to its management team following a period of sustained and significant growth.
The management buy-out has been led by current CFO Stephen Goodman and financially backed by Pricoa Capital Group. Chris Ingram, who co-founded the business in 1999, becomes chairman and current MD Mike Newbould will also remain on the board, taking on the role of interim CEO. Stephen Goodman will transition into the CEO role as well as leading the wider senior management team who have also become shareholders in the business.
Both Chris and Mike will also remain minority investors in the business alongside BGF, who have partially exited from their original £10m investment.
York Mailing is the UK market leader in the specialist production of retail flyers, media inserts and quality catalogues. In the past two years, under Chris and Mike’s leadership and with BGF’s financial backing, revenues have grown from £69m to more than £100m through acquisitive and organic growth and significant investment in new machinery. This has resulted in 275 new jobs to the group, more than a 50% increase in earnings to £12m EBITDA and value creation for all shareholders.
York Mailing acquired The Lettershop Group in August 2013 adding technologically advanced printing capabilities to the Group. This was followed by the acquisition of Go Direct Marketing in September 2014, bringing a new data-driven analytics division.
This deal represented BGF’s first exit and return on capital since it began investing in 2011. BGF’s long-term funding structure means that while it remains a minority investor of York, the initial return made from this deal will be reinvested into other growing companies.
Altec Engineering, an engineering solutions provider based in County Durham, received a £6m investment from BGF to support its buy and build strategy and organic growth. The first investment was the acquisition of neighbouring business Ronco Engineering.
Altec Engineering designs and manufactures special purpose equipment and manufactures high precision CNC components for the automotive, aerospace, mining, defence and oil & gas sectors. Ronco Engineering is a precision engineering company based in Tanfield Lea, County Durham. Founded in 1992, it provides CNC manufactured parts to customers such as Caterpillar and JCB.
Altec Engineering is led by an experienced team and its major shareholder Alastair Waite, who acquired a majority stake in the business from his father. Altec acquired Yorkshire based Sigma Technologies in November 2014. Altec Engineering plans to scale-up its business through accelerating its organic growth plans following the expansion and investment into its Durham site last year and the delivery of new value-added services such as specialist coatings and through further strategic acquisitions.
David Bailey, former vice president of Parker Hannifin Europe, was appointed to the role of non-executive chairman following an introduction made by BGF.
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.
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.