RMS International has secured a growth capital investment from BGF to fund infrastructure developments and further expand its global operations.
RMS International designs, sources and distributes toys, craft, stationery and licence product to customers worldwide. Headquartered in Manchester, the business has offices in Miami, Boston, Hong Kong, Shanghai and the Netherlands.
Over the past 25 years, RMS has developed a range of products under its own brands, Grafix, Blocktech, GL and Games Hub. This has been a major driver of growth and helped to establish RMS’s reputation for innovative, exciting and value-for-money products. More recently, the business has been building a strong ‘licenced product’ line, working with Disney, Universal and other major franchises. RMS’s management team is now pursuing further expansion in the licenced-brand product category, as well as continued development of Grafix and its other major brands.
Founded in 1982, RMS’s operations include product innovation and design, research and testing and supply chain audits to service major retailers worldwide. Significant in-house market research and design means that RMS is able to react to market trends and introduce new lines across all areas of the business. RMS employs 130 staff globally, including a team of 27 designers.
The business has appointed Stuart Rose, the former Chairman of toy group Hamleys and former Managing Director of The Body Shop, as Chairman, following an introduction by BGF.
Sertec Group Holdings Ltd, one of the UK’s largest independent manufacturers of stampings and welded assemblies, secured a £20m funding package from BGF and Lloyds Bank Commercial Banking to support the management team’s continuing expansion plans for the 54 year old business.
The Coleshill headquartered manufacturer is a key supplier partner to Jaguar Land Rover (JLR) among others, producing over three million parts per week from aluminium and steel across its five operating sites in Birmingham. The business has enjoyed significant growth over the last eight years with sales rising from £40m in 2008 to close to £200m today.
The new funding from BGF and Lloyds Bank will allow Sertec to accelerate their growth strategy.
The business has invested heavily across all operating centres in new robotics, presses and site upgrades. 2016 will see the completion of a brand new £16m press shop at its Coleshill factory.
The investment by BGF and Lloyds Bank will facilitate Sertec’s continued expansion to support JLR’s exciting development of new vehicles such as the launch of Discovery Sport and Jaguar XE and this year’s arrival of Jaguar’s new crossover F-Pace and the convertible version of the record breaking Range Rover Evoque.
Founded by the Mosedale family, the company’s executive team includes CEO Grant Adams, Managing Director Dave Steggles and Finance Director Martyn Hughes.
As part of the investment, Mike Baunton has been appointed as Non Executive Chairman at Sertec and brings extensive industry experience through his current roles as Chairman of SMMT Industry Forum Limited (The Society of Motor Manufacturers and Traders’ Industry Forum) and of VTL Group.
Castleton Technology plc
BGF invested £2m in Castleton Technology plc, (LSE: CTP) the software and managed services provider to the public and not-for-profit sectors, to support the acquisition of Kypera Holdings Limited and Castleton’s longer term growth strategy. At the same time, the Group’s existing investor MXC Capital has invested £1.5m while Barclays has extended it bank facilities by a further £1m.
Castleton provides tailor made software and infrastructure solutions, predominately in the social housing sector. Nearly a third of all the social housing associations in the UK are now Castleton customers. The business has made seven acquisitions in the last two years, buying complementary businesses focused on the social housing sector – Montal, Documotive, Keylogic, Opus, Impact, Brixx and Kypera.
The acquisition of Kypera – a provider of integrated housing management and finance software – will provide a software platform to Castleton’s multiple service lines to create the only integrated, single Enterprise Resource Planning (“ERP”) platform solution in the social housing sector, as well as bringing an international presence to Castleton’s operation
BGF’s co-investment with MXC Capital, along with the additional bank facilities, will allow the Group to continue to take advantage of growth opportunities available to it including, possibly, acquisitions of other businesses.
The investment was made by BGF Quoted, BGF’s specialist team focused on listed businesses. Previous investments in AIM-listed companies include Kidderminster-based Victoria plc [LSE: VCP] and Styles & Wood, [LSE: STY] headquartered in Greater Manchester.
Ian Smith, Chief Executive of Castleton said: “This is a critical acquisition for us. Kypera adds a whole new level to Castleton’s offer. We are now the only integrated, single ERP platform solution able to meet every aspect of our customers’ needs – the only “one stop shop” serving the sector.
“We are pleased to have BGF Quoted on board as a strategic long-term partner, whose funding will allow us to unlock further growth in the business.”
Gurinder Sunner, BGF, commented: “Castleton’s management team has demonstrated its ability to execute an acquisitive and organic growth strategy. We are delighted to be supporting them as strengthen their offering even further with the integration of Kypera and to make our first co-investment alongside MXC.”
The investment was led by Gurinder Sunner, Paul Brindley and Tom Jenkins for BGF Quoted.
Adestra, a leading provider of innovative marketing technology software and services, secured a £4.43m growth capital investment from BGF in January 2016 to expand in the U.S. and internationally. This marked the first institutional investment in the company since it was founded in 2004.
With more than 500 clients worldwide across a number of key sectors, Adestra has experienced annual double-digit revenue growth for more than a decade. In 2015, the company announced the opening of its U.S. operations in Dallas and New York.
Headquartered in Oxford, Adestra is using the investment to expand its U.S.-based team and provide them with the infrastructure they need to support rapidly growing demand for the company’s unique value proposition in the market.
Henry Hyder-Smith, co-founder and CEO of Adestra. “Email is experiencing a fantastic and well-founded resurgence as the cornerstone of a brand’s digital communications strategy. As a result, we’ve seen an enormous amount of high-profile acquisitions and consolidations in our industry, but those moves have also created a real void in the market – one that Adestra is poised to fill.
“The investment by BGF is not only a validation of our business model, but it will also help fuel our U.S. growth in a way that is consistent with Adestra’s customer-driven approach.”
The investment in Adestra was led by BGF’s Bristol office.
Grace Cole, the English brand of bath, body and beauty products, secured a multi-million growth capital investment from BGF in January 2016 to pursue further expansion in the UK and internationally.
Headquartered in Cheshire, the company’s range of products and gifts are sold in leading department stores and pharmacies including House of Fraser, Debenhams, John Lewis and Lloyds, and exported to more than 80 countries worldwide through a global distribution network and direct to high-quality retailers.
With all of the daily care products manufactured in the UK, Grace Cole has experienced rapid sales growth in countries such as Japan and Saudi Arabia where there is strong customer demand for ‘made in England’ beauty products.
BGF’s investment is being used to support entry into new markets, and drive further sales in existing markets which include the US, Europe, the Middle East and Asia Pacific. The business also plans to diversify into new product categories in response to demand from its retail customers.
Founded in 2007 by entrepreneur Tracy Mort, the company designs and develops Grace Cole-branded products which include collections such as Boutique, Fruit Works, and Tea Tree, and has won a number of awards for its products, entrepreneurship and business growth.