BTG McInnes Corporate Finance News

Yorkshire Wholesaler Rescues Historic Lancashire Sweet Firm

uat — Thu, 03 Dec 2009 09:39:51 GMT

Accrington confectionery manufacturer Stockley’s Sweets has been bought out of administration saving the 90 year old firm and securing the jobs of all 38 staff who potentially faced redundancy.

Leeds-based wholesaler Morris and Son (Leeds) Ltd has acquired the business that produces a wide range of boiled sweets, fudge, cinder toffee, Coltsfoot Rock and other traditional confectionery products, in order to strengthen its supply chain and broaden the range of products that the enlarged company can supply to its many wholesale and retail customers.

A whirlwind deal was pulled together in just three days by corporate finance advisers BTG McInnes as there was significant interest from numerous other parties and a quick completion was imperative to secure the deal. The deal, funded internally, sees an injection of working capital in addition to the undisclosed consideration paid for the business.

Founded in 1918, £2m turnover Stockley’s produces nostalgic favourites such as pear drops, chocolate limes, barley sugars as well as traditional cinder toffee and fudges. Over the years, the company has supplied many wholesalers and retailers, but it was the collapse of Woolworths last year that ultimately led to the failure of its parent company, Mr Lucky Bags Ltd on 23rd September 2009.

“Stockley’s has always been a very solid business that was unfortunately dragged into problems caused by the failure of its parent company,” said Andy Needham, managing director of Morris and Son.

“We saw a really good fit between our businesses and have been able to secure a deal with the administrators that saves all the jobs, helps us grow our business and creates more opportunities for Stockley’s too, so it’s a dream deal for us,” he added.

Mr Lucky Bags Ltd supplied products to Woolworths nationally, and the business was dealt a massive blow by a bad debt incurred when the retailer finally collapsed in November 2008 although it continued trading for almost 12 months, before finally collapsing last month when administrators from PWC were called in.

This is the second deal Morris & Son has completed in just five months. In June the company saved six jobs when it bought Manchester based cash & carry wholesaler and confectionery packing business Graham’s Cash & Carry following the collapse of the Loughborough headquartered business.

“The opportunity that Stockley’s presented was very attractive and the deal makes good sense for Morris & Son,” said Steve Roberts of BTG McInnes Corporate Finance.

“The management team led by Phil and Kath Lawson, the highly skilled workforce, and a well established brand and product range, are great assets. The existing strong business combined with Morris and Son financial strength, purchasing power, distribution and operating facilities, alongside many additional routes to market , should see the consolidated business bedding down very quickly indeed,” he added.

Needham became the managing director and majority shareholder of Morris and Son when he bought the firm through an MBI in August 2003.

The company has consolidated its position as a significant operator and supplier primarily in the discount food sector over recent years and has just completed its most successful trading period yet with turnover exceeding £15m in 2009.

The business previously operated from two sites; an 80,000 sq ft wholesale warehouse and cash & carry at Cross Green Industrial Estate in Leeds and the 8,000 sq ft former Graham’s Cash and Carry facility in Levenshulme near Manchester.

Trading has been robust during the credit crunch following increased consumer demand for discount food and non-food products and the subsequent growth of some of Morris and Son key customers. The firm now employs a total of 80 staff across four sites and is actively seeking further opportunities to grow the business through acquisition.

BTG McInnes Advises Hargreaves Services plc on £115m Funding Deal

uat — Wed, 23 Sep 2009 11:16:17 GMT

Rapidly expanding Durham-based Hargreaves Services plc has secured funding in one of the region’s largest corporate deals of the past 12 months.

Hargreaves Group is a leading supplier of products and services to the energy, mineral and waste sectors. During the past few years, the £503m turnover business has grown both by acquisition and organically, and has now secured a new debt package to allow for further growth over the coming year.

Sourced from a ‘club’ of five banks, led by existing bankers Royal Bank of Scotland, the deal that was structured and negotiated by the BTG Mcinnes Corporate Finance team in Newcastle will deliver a £115m debt refinancing facility.

Lloyds TSB Corporate Markets, Santander, HSBC and Yorkshire Bank have all joined RBS in providing the facilities, demonstrating the renewed corporate lending that is starting to be seen to following a period of virtual standstill after the collapse of the banking markets in September 2008.

Commenting on the refinancing facility, Iain Cockburn, Hargreaves’ Finance Director, said: “We are pleased to have new finance arrangements in place. Given the current economic climate, we believe the securing of this facility is testament to the strength of the business and its prospects for further progress.”

Established in 1994 as a specialist bulk haulier, the Hargreaves Group has grown, both organically and by acquisition, into a major force in the supply, movement and management of mineral resources and the provision of support services to the energy and waste industries.

“Despite the unprecedented economic conditions this deal is evidence that good quality businesses with strong management teams are still able to secure funding,” said Shawn Bone, partner at BTG McInnes Corporate Finance.

“Hargreaves is a quality North East business and there was a great deal of interest from the banking sector to support its expansion. It is now well positioned to continue its successful track record of growth,” he added.

The Group employs 2,300 staff and operates through four divisions, production, energy & commodities, transport and industrial services. The Hargreaves Group operates over 400 vehicles as well as other sub-contracted haulage stock around the UK and owns numerous collieries, factories, transport depots and manufacturing plants across the country.

Other advisers involved in the deal included KPMG who provided transaction support services, Walker Morris who advised the company on legal matters and Eversheds who advised the banking group.

MBO at Cosalt Saves 20 Jobs

uat — Tue, 21 Jul 2009 10:20:03 GMT

A three-strong executive team led by former sales director James Garland has bought the intellectual property rights, goodwill and plant and machinery as well as taking a five year lease on the firm’s Stockholm Road facility.

Martyn Hadfield, a 25-year veteran of Cosalt will also take a stake in the firm and continue in his role as operations director, while Malcolm Mathieson joins the business as finance director and shareholder.

The business was acquired by Leeds-based turnaround fund Endless in October 2008 after parent company Marine specialist Cosalt Plc struggled to find a trade buyer for the ailing caravan business.

The MBO team stepped in to save the remaining jobs and Leeds corporate financier Will Arnold of BTG McInnes Corporate Finance negotiated the sale of the only remaining division of the Holiday Homes business after the closure of the firm’s Stoneferry Road site and the loss of around 200 jobs.

Cosalt Holiday Homes will no longer build caravans, but instead will concentrate on the growing demand within holiday lodges and homes sectors.

“We have rescued a viable and reputable business that has a great deal of potential, and we have to now work hard to up skill the business from being dormant to returning to steady production very quickly,” said managing director James Garland.

“We will be inviting applications from the former Cosalt employees for the new jobs, and we are confident that we will be able to fill the skilled positions from this source, and hope to steadily build the business to becoming a major employer again in the years to come,” he added.

Cosalt Holiday Homes will now exclusively manufacture and sell high quality lodges to the leisure and UK holiday industry. The deal, structured by BTG McInnes and backed by private investment and working capital facilities provided by HSBC, will see the firm’s workforce double from its current level of ten over the coming weeks.

“The business that the team has acquired is a reputable and viable manufacturer, and has a great chance to grow from base with a great product, excellent manufacturing capability, a highly skilled workforce and a book of orders and strong leads. That any aspect of the Cosalt business could be saved is good news, given the seriousness of its problems,” said Will Arnold of BTG McInnes Corporate Finance.

Production is expected to resume within weeks and a strong order book and pipeline of enquiries for the lodges from leisure operators and holiday parks across the country is anticipated to deliver 60 to 70 units in the next 12 months.

Demand for the lodges is growing as UK leisure operators invest in high quality holiday homes, equipped with en suite bathrooms, gourmet kitchens and state of the art entertainment systems and the firm anticipates turnover in excess of £2m over the coming year.

Two Feet Forward for New Franchise

uat — Tue, 21 Jul 2009 10:12:47 GMT

The new company which will have its head office in xx has been funded by the management team and private high net worth investors.

The business is an exciting new concept which allows parents to buy children’s shoes through the schools at their own convenience – taking away hours of waiting in shoe shops. In addition, the schools retain some of the profit on the sale of the shoes, providing them with an additional income stream.

The concept has been praised by both schools and parents and in a matter of weeks, more than 75 schools have signed up to the scheme. The formal launch however will take place in late August or early September to coincide with the start of the new term.

MD of Two Feet for Kids Ltd, Conor Quealy said: “listening to my wife and other mothers constantly complaining about the difficulties of buying school shoes made me realise that there had to be a better way of doing it. With the help of Jeff Barber and the team at BTG McInnes, the concept has become reality.”

Jeff Barber added: “We meet many people looking to start a new business which at the best of times is difficult but even more so now. However every now and again, we meet someone whose concept is so clearly viable that we have no question in taking on the assignment. This is one of those occasions.”

Secure Future for Fareham Family Firm

uat — Tue, 21 Jul 2009 10:07:06 GMT

Talana Plastics was founded by Trevor Ballard in 1987 and rapidly gained a reputation for excellence in the field of technical injection mouldings, supplying precision products to a wide range of customers including the medical, electrical and leisure industries.

As the main shareholders of the family business approached retirement, the directors sought the professional advice of BTG McInnes Corporate Finance on the options open to them. The underlying strength of the business and its excellent reputation in a niche market indicated that a good sale was achievable, even in the throes of recession.

A deal was completed at the end of May and Talana Plastics is now part of HWH Holdings, a new company under the ownership of Steve Hall and Ian Hunter. The company will continue to operate from its 9,000 sq ft manufacturing base at Fareham Industrial Park and the existing 16-strong workforce has been retained.

“Aside from the value achieved for the shareholders, the most rewarding part of this deal is the knowledge that the new owners have first-hand knowledge of the plastic injection moulding industry and are well-placed to build on Talana’s strengths in a niche market,” said Rosemary.

“It may take a little longer to achieve the best outcome for a business sale in the current economic climate, but there are still positive deals to be done for well-run companies with strong order books and good future prospects.

“I wish the staff at Talana Plastics and the company’s new owners every success.”

BTG McInnes Corporate Finance is part of the Begbies Traynor Group which opened a new Portsmouth office at 1000 Lakeside last month.

MBO and Relocation at Controlled Speed

uat — Wed, 04 Feb 2009 10:36:00 GMT

The £3m turnover West Yorkshire firm was established in 1984 and supplies some of the world's leading manufacturers of mobility products. Controlled Speed’s motor controls and assemblies are used in domestic stair lifts, bath lifts and scooters. It also has a rapidly expanding contract electronics manufacturing division which produces bespoke electronic assemblies for a variety of industries.

Burns has taken majority control of the company after buying out his 50 per cent business partner and commercial director Mike Fitzgerald in a cash deal structured by BTG McInnes Corporate Finance.

Burns and Fitzgerald bought the firm in a management buy in deal in July 2000 and since then the business has doubled in size to become a market leader.

“This is a great business with a terrific workforce that we have been able to grow over the past eight years, and the new funding gives us a fantastic platform to take the company to the next stage,” said Phil Burns, CEO.

“We have grown significantly in the last few years but it was becoming increasingly challenging for us to cope with the demand as we had reached capacity in our Brighouse plant. We knew that we needed to make significant investment to take advantage of the opportunities presented to us. This deal, coupled with the relocation to larger premises, marks a whole new chapter for us and will allow us to fulfil our potential,” he added.

Controlled Speed employs 36 staff including highly skilled design and assembly experts. It had reached its production capacity at its Brighouse base and will relocate to a new, purpose-built 15,000 sq ft manufacturing facility in Batley. The new facility will be fully operational by April this year and will allow the business to expand with management planning to grow turnover and the workforce over the coming 12 months.

The board of Controlled Speed is strengthened by the appointment of local business figure David Gravells as chairman, Luke Bigham as technical director and Jim Whittaker of BTG McInnes who advised on the structure of the deal.

The MBO and the relocation have been funded by a package of finance from The Co-operative Bank and Partnership Investment Finance. The Co-operative Bank, whose team was led by Jeff Fryer, provided senior debt and working capital facilities and PIF, led by Duncan Gray, provided equity and mezzanine funding.

“This business is a Yorkshire success story, and the backing from the Co-op and PIF is proof that, despite the general climate there are still good deals to be done for quality businesses. The increased production capacity is the catalyst the business needed and once the firm has relocated it will be able to accelerate its growth,” said Sonia Alghita of BTG McInnes who advised management on the deal.

Jeff Fryer, business development manager at the North East corporate banking centre of the Co-operative Bank, said: “Despite the uncertain economic climate, the Co-operative Bank is still very much open for business and is keen to work with and fund companies with sound business strategies.

“We are in a strong position to provide funding for existing and new customers, unlike some other lenders who seem to be more reluctant to provide funding at this current time,” he added.

“Controlled Speed is a Yorkshire business designing and manufacturing world-class, innovative electronics for a global market. We are delighted to be backing a quality management team and providing funding and support to help them take full advantage of the opportunities available to them,” said Duncan Gray of PIF.

Alex McWhirter, assistant director of business at Yorkshire Forward said: “At a time when there are concerns about British manufacturing it is encouraging that PIF is backing the management buyout of a local company whose prospects for growth and further skilled job creation are very good indeed.”

Management were advised by David Strachan and Emma Garland of Schofield Sweeney in Leeds and other legal advisors involved in the deal included Cobbetts, Keeble Hawson and HLW.

Management Buy In at Tyne & Wear Security Firm

uat — Tue, 03 Feb 2009 10:41:00 GMT

£4m turnover Goldshield was founded by Grahame Shaw and Stan Johnston in 1986. Over the past 22 years it has grown to be one of the North’s leading companies in the supply, installation and maintenance of security devices and systems for care homes and assisted living premises.

The firm’s core business is installing remote personal alarm systems, such as Warden Call and Telecare, as well as door entry, CCTV and fire and security systems to protect the safety of residents and premises in public and commercial care facilities.

Glover has been backed by Royal Bank of Scotland and venture capital fund Infinity Asset Management to take ownership of the company and develop the business in the sector that has massive potential for growth.

The deal, structured by BTG McInnes Corporate Finance, sees the founders selling 100 per cent of the shares in the company in the cash deal but they will remain with the company as directors to support Mr Glover to assist with the planned growth of the business.

“Goldshield has a fantastic reputation for quality, reliability and service thanks in the main to the quality of our workforce and personnel, and this deal gives the business the best possible chance to grow and evolve over the coming years,” said Grahame Shaw

“After 22 years growing a business we are very proud of, we were approached by Stuart Glover and his backers who were looking to invest in building a business in this sector, and who identified our firm as the best strategic base from which to grow,”

“In many ways this will be business as usual, as both Grahame and I will remain in our roles to support Stuart as he comes into the firm. With the backing of RBS and Infinity, and the ambition of Stuart, we can see enormous potential for growth and opportunities for the business and everyone here, and the deal will open up a whole new chapter for the firm,” said Stan Johnston.

Shawn Bone of BTG McInnes, who advised the vendors in the transaction said: “Goldshield has developed a strong brand within its niche markets and installs the UK’s leading security products from leading manufacturers with whom the founders have developed excellent relationships. The deal represents a great opportunity for a fantastic business and North East success story to take the next step forward.”

Mark Irving from BTG McInnes also advised the vendors, and Peter Robinson of Muckle LLP law firm handled the legal work for the exiting founders.

Peter Robinson of Muckle LLP said “Goldshield's founders have developed a strong business over the last 2 decades. It's been great to work with Grahame and Stan and help them both take the business into the next phase of its growth with Stuart. The company has a great future going forward."

Goldshield currently employs 40 engineers and administrative staff from its base at Camperdown Industrial Estate in Killingworth, and as well as the thriving book of business that grew significantly last year.

Four Seasons Group Continues Acquisition Strategy

uat — Mon, 07 Jul 2008 10:39:00 GMT

The combined business boasts an impressive client list including H&M, William Hill, WH Smith, Ladbrokes, Nationwide Building Society, Waterstones, Costa Coffee, Swinton Insurance, Boots, La Senza, and Carphone Warehouse.

The Group, which employs 98 staff and has its headquarters in Leeds, has made the acquisition as the latest step in a ‘buy and build’ strategy with a view to becoming the leading UK specialist in its field. FSG made its first acquisition in May 2007, acquiring Surrey based Air Conditioning and Associated Services (AAS).

Tom Keeping, the CEO of FSG who took over the reins of the business when he led a Buy In Management Buyout in 2005, said “The management team is delighted with the opportunity to acquire HM Air Cooling and we are looking forward to continuing the successful growth of FSG both organically and through further value enhancing acquisitions,” he said.

Barclays Ventures, having provided equity finance in May 2007 to fund the acquisition of AAS, provided further equity finance, whilst senior debt and working capital was provided by Lloyds TSB Corporate Markets.

BTG McInnes Corporate Finance advised FSG on the deal that saw 100 per cent of the equity in HMAC being acquired from founder Henry Granata and fellow shareholder Dave Cooper. The former established HMAC in the mid 1980s and both will continue to play an important part in the future of both HMAC and the larger Group.

Dion Hirst, Investment Director at Barclays Ventures said: “We have worked with the management team for over 12 months and remain committed to building a specialist national player. The group is well set to build on its already impressive client base with this deal which expands its geographical reach. The deal also gives the group critical mass which will enable it to take advantage of the growth opportunities offered in the air conditioning sector.”

“We are delighted to be supporting the Group through this stage of its development and look forward to building a strong partnership that fully enables FSG to follow its considered, appealing strategy.” commented Rob Lawrence, Director at Lloyds TSB Corporate Markets’ acquisition finance team.

Andy Miller of BTG McInnes, who advised FSG, said: “The acquisition gives FSG better coverage of the growing UK market, significant economies of scale and enhances Group market share. This important second acquisition is likely to be followed by other similar deals as the buy and build strategy continues.”

Other advisors on the deal included Sean Fitzgerald and Nicola Frost of Cobbetts, advising FSG; Simon Owens of Hammonds, advising Lloyds TSB Corporate Markets; Mark Lister and Pete Melling of PKF, who carried out the financial due diligence; and Terry Leggett of MBD, who carried out the commercial due diligence.

Contract Caterers Merge to Establish Market Leading Group

uat — Mon, 23 Jun 2008 10:40:00 GMT

The deal, which was structured and project managed by BTG McInnes Corporate Finance, funded by Yorkshire Bank and supported by the existing Caterplus investors, led by YFM Private Equity, was completed simultaneously with the acquisition of Newcastle-based Hospitality Catering Services Ltd, immediately establishing a nationwide presence for the new Group.

Taylor Shaw’s managing partner, Peter Taylor, will join the Group executive management team as a shareholder alongside the existing Caterplus management team, led by Chairman Vince Pearson and Managing Director Jim Lovett, and their investors.

The combined businesses have a proforma turnover in excess of £35m and, following the transaction, now employ more than 1,600 staff across over 350 educational establishments, care homes, welfare shelters and office/factory canteens throughout the UK.

“This announcement is the culmination of months of hard work to find and structure a deal with a like-minded catering business as part of our long-term strategic growth plan” said Vince Pearson.

“Both Taylor Shaw and Hospitality Catering Services have strong management, excellent workforces and high quality contracts that will provide a robust platform for further growth” he added.

The Group will continue to trade under its three separate brand names, all of which have strong reputations for fresh food and quality service in their target markets.

“Caterplus has grown rapidly since its £4m buy-in management buy-out last February, and to have grown both organically and now, by this merger, is testament to a clear strategy that should deliver more acquisitions in the medium term” said Andy Miller of BTG McInnes, who advised Caterplus on the transactions and the 2007 buy-out.

“The three entities have a very strong strategic and cultural fit, with the merger resulting in an organisation that has a good balance of contracts across the education, care & welfare and business & industry sectors and a significant geographic spread across the UK” he added.

Peter Wood of Pinsent Masons led the team who advised Caterplus on the legal aspects of the transactions, Jenny Cochrane of Addleshaw Goddard provided legal advice to Taylor Shaw and Mark Davies of Cobbetts to Yorkshire Bank. Ruth Cherry led the Yorkshire Bank team and Nigel Barraclough of YFM Private Equity represented the investors.

Northern Pharmacy Chain Acquired by Alliance Boots

uat — Sun, 27 Apr 2008 10:37:00 GMT

In a deal that follows a period of consolidation in the retail pharmacy sector HF Healthcare Limited has been sold by founder Alex Holliday for an undisclosed sum.

The firm operates a range of retail and health centre pharmacies mostly under the Healthcare Plus brand, and they can be found across the north of England, from Morpeth in Northumberland to Leeds.

The £30m turnover business had grown to become the largest privately owned independent wholesale and retail pharmacy group in the North East. Founded in 1995 HF Healthcare Limited employs around 240 people.

BTG McInnes Corporate Finance led and negotiated the transaction, which sees 100 percent of the equity in the firm acquired by Alliance Boots, on behalf of Alex Holliday, with advice from his legal team at Hay & Kilner.

L to R: Shawn Bone (BTG McInnes), Alex Holliday (HF Healthcare), Chris McCourt (BTG McInnes) & Nick James (Hay & Kilner Solicitors)

Having built the business from renting a room above a pharmacy in 1995 the company bought its first pharmacy in 1999 and through a series of acquisitions its 25th in 2007. “I felt the time was now right to consider my continued involvement in retail pharmacy,” said Alex Holliday.

“This deal gives me the opportunity to focus on my other business interests” he added.

Alliance Boots employs over 100,000 people in 15 countries and was formed in 2006 by the merger of Alliance Unichem and Boots Group. The firm was taken private in June last year when a successful bid of over £11bn was made by KKR in the first deal to see a FTSE 100 company acquired by a private equity house.

“There has been significant consolidation in the pharmacy sector over recent years, and we have been involved with HF Healthcare as the business grew organically and through the acquisition of Barons Chemists in 2005. Given the business had grown to be the largest independent pharmacy business in the North East it was a logical step for the business to become an acquisition target itself,” said Shawn Bone of BTG McInnes Corporate Finance.

“This is further evidence that trade buyers in the M&A market continue to be active, nothwithstanding speculation that the credit crunch will reduce appetite for deals. Having recently acted on the sale of Heighley Gate Garden Centre to a large corporate buyer, the trade buyer market remains buoyant and open for business where there are quality targets. HF is a high quality business and Alliance have acquired a significant foothold in the North East through this acquisition” Bone added.

Hay & Kilner played a crucial role in making sure the deal was done on time. The legal team faced a tough deadline to complete the transaction. Nick James, lead partner from Hay & Kilner, commented:

“The deal had to be done before midnight on 31st March. We had a team of solicitors working right up to the deadline to ensure that our client was able to complete on time.”

Other advisors in the deal included Andrew Nichol and Simon Richards at UNW who provided accounting support and tax advice.

MBO at Coventry Telecoms Firm Optilan

uat — Mon, 07 Apr 2008 10:35:00 GMT

The deal, backed by NVM Private Equity Limited (NVM) and structured by Iain Lownes of BTG McInnes Corporate finance in Birmingham, sees 100% of the equity in the business acquired from former owners for an undisclosed sum. Additional bank funding was provided by AIB and GE Commercial Finance.

L to R: Iain Lownes (BTG McInnes), James Arrowsmith (NVM) & Richard Buckland (Optilan)

Optilan was established in 1992 and employs over 200 staff from its head office in Coventry and two satellite offices in Russia and the Middle East. The firm specialises in the design, installation and maintenance of telecoms systems for the oil and gas, transport and power as well as the utilities sector.

Richard Buckland was one of the original founders of the business and as CEO has led its expansion into new markets: recruiting a strong expert management team around him in the process. He and fellow directors Chris Yarwood, Bal Kler and Tim Gray have all taken a stake in the business and will be joined on the board by James Arrowsmith of NVM.

Richard Buckland said: “To be able to lead the business forward with the backing and expertise of NVM opens up a new chapter in the history of Optilan.

“Our expert workforce, excellent product range and our reputation give us a fantastic platform from which to grow the business, and we now have the backing to ensure we can take full advantage of every opportunity in our existing and also new markets.”

Optilan provides its customers, including firms such as Coventry City Council, BP and projects such as the Channel Tunnel Rail Link, with everything from the initial system design through to installation, commissioning and maintenance of fibre optic cabling.

Iain Lownes of BTG McInnes commented: “All of Optilan’s key sales markets are experiencing high levels of investment that are largely resilient to slow downs in the world economy.

“The firm’s experienced management taking a stake, coupled with its reputation in a niche market gives the business excellent prospects for further growth.”

James Arrowsmith of NVM Private Equity added: “Richard Buckland has been instrumental in the development of Optilan and its continued growth. He is ably supported by a great management team and we believe they have a great platform to take advantage of growing markets and realise their expansion plans”

The majority of Optilan’s employees are engineering and technical staff based in Moscow, Qatar or the firm’s West Midlands head office.

Heighley Gate Deal is Platform for Growth

uat — Tue, 04 Mar 2008 10:34:00 GMT

The garden centre that employs around 190 staff near Morpeth, Northumberland was sold last week by the Lishman family for an undisclosed sum following an approach by the industry consolidator that now owns more than 120 sites across the country.

L to R: David Lishman & Shelia Lishman (former owners, Heighley Gate), Chris Welch (Sintons), Shawn Bone (BTG McInnes) and Ian Simpson (Heighley Gate)

The sale represents the end of an era for the family who established the garden centre in 1963, but Shawn Bone of BTG McInnes explains the deal gives the business a new lease of life.

“The Heighley Gate deal came as consolidation and investment in the sector has reached a new peak. I would expect the industry’s biggest players, Wyevale and Dobbies, to take garden retailing to a whole new level with massive investment.”

“The huge sums of money behind the big players has come as large corporates such as Tesco and big private equity players, notably Sir Tom Hunter’s West Coast Capital fund have become very interested in the sector through their ownership of Dobbies and Wyevale. Now the best independents like Heighley Gate risk being left behind in investment terms, unless they can become part of the revolution in this retailing sector.”

The £9m turnover Heighley Gate business attracted around 1 million visitors to its 40-acre site last year, and in Autumn 2007 the centre was awarded Garden Centre of Excellence status for the fifth year running.

Shawn Bone added: “I would expect further consolidation in the sector. Owners are beginning to appreciate, just like the Lishmans, that selling is actually consistent with development of their businesses and provides more opportunity for their staff and customers alike.

“The family understood that Heighley Gate needed to be taken to the next level and in many ways Wyevale, given its scale, access to capital and experience of garden centre development was the natural buyer. Given Wyevales plans for its own business and now Heighley Gate, the deal should be very much in the interests of staff and customers.”

Heighley Gate has been developed over the past into more than just a garden centre, with a restaurant, coffee bar, food hall, gift and furniture departments and play areas making it a ‘retail attraction’.

Founder David Lishman said: “We see this as an ideal opportunity to ensure the continued success and further development of Heighley Gate in an increasingly competitive market.

“The business was never put on the market for sale but after a number of approaches by Wyevale it was decided that the timing was right. There are huge changes taking place within the industry and as a family we have invested significantly in recent years. Further heavy investment is now required to meet the competitive challenges within the sector.”

The founders David and Sheila Lishman are to retire. Mick Lishman will remain as head of the nursery whilst Chris Lishman and Fiona Emmerson will be employed for up to three months to assist in the handover to Wyevale.

Other advisers to the vendors included Sintons law firm and accountants Stokoe Rodger.

Alan Dawson, partner at Sintons Solicitors LLP, said: “Sintons have been advising two generations of the Lishman family for more than quarter of a century, and to see Heighley Gate develop so well over the years has been tremendously satisfying.

“Very often, we’ve discussed issues sitting around their farmhouse table well into the evening. I admire the huge amount of hard work and financial investment they have put in.”

Management Rescue Welsh Pastry Business

uat — Mon, 25 Feb 2008 10:33:00 GMT

The four-strong team all worked for specialty frozen food manufacturer Medway Foods Ltd that operated three factories in Whitstable, Sheppey and Bridgend before falling into the hands of receivers.

Emma Crowther (sales director) and Philip Stanton (sales director) along with Ceri Smith, (finance director) and Mark Jones (operations director) have become majority shareholders of a new company – Pin-it Pastry Ltd - that has acquired the goodwill and assets of Medway Foods Bridgend pastry factory.

The company is a specialist in manufacture of turnovers and other frozen pastry products that are sold to wholesale bakers and food suppliers.

The deal that was structured by Will Arnold and Jim Whittaker of BTG McInnes Corporate Finance has been backed by Five Arrows Commercial Finance.

“This is a new start for the best aspects of Medway Foods, and it means a future for dozens of skilled Welsh workers” said Philip Stanton.

“We have a very committed expert workforce and excellent niche products. Trading as Pin-it, the new company will be focused on a market we know very well with the highest quality product range,” added Emma Crowther.

The new firm already has orders and can count many major food manufacturers as customers following urgent rescue talks to ensure the continuation of production in Bridgend.

Will Arnold of BTG McInnes, who advised management said; “The rescue of a viable business with respected products by the people who know this operation so well is the best possible outcome for all concerned.

“The business has a great product range, excellent reputation and is able to trade from day one, in a position to excel in a niche the board knows inside out.”

Richard Fergusson and Paul Johnson of Keeble Hawson provided legal advice to management.

Medway Foods struggled to survive tough times despite the excellent trading of its Bridgend plant and pastry products, largely due to the underperformance in its cooked meat and other prepared foods factories in Sheppey and Whitstable that will not be acquired in the deal.

Cast Iron Future For Foundry MBO

uat — Mon, 18 Feb 2008 10:31:00 GMT

Managing director Michael Earnshaw led the purchase of WB White Foundry Ltd in Brighouse from founders Bob Pearson and David James, for an undisclosed seven-figure sum backed by The Royal Bank of Scotland (RBS).

L to R: Andrew Walls, Michael Earnshaw (MD, WB White Foundry), Pete Smith (RBS)

He is joined by operations director Richard Taylor, commercial director Paul Owens and finance director Peter Fox in the deal that was structured by BTG McInnes Corporate Finance and sees 100 percent of the equity sold to the new management team.

Mr Earnshaw said: “We have big plans for WB White and as a team we have been given the opportunity to commit to its future. We have a fantastic staff of skilled workers, and our reputation for innovation, value and quality is a great platform from which to grow the business.”

The company that employs 40 staff was established in 1991 in the former Dominion Foundry, Brighouse, by 50 percent shareholder Bob Pearson. Fellow shareholder David James joined in 1992, and has also sold his 50 percent stake in the company.

Specialising in high quality metal castings WB White supplies the engineering, automotive, construction, retail and print sectors. The firm’s ASF division, launched in the Nineties, produces street furniture including bollards, railings, benches and tree grills.

Andrew Walls of BTG McInnes commented: “This is a really solid business with an experienced management team, consistent growth and a diverse and growing customer base. The improved profitability predicted by the new owners should be achievable, through a combination of new product lines and closer trading operations between the two divisions.”

Peter Smith from RBS provided senior debt facilities and John Moors of RBS Invoice Finance provided working capital facilities in a funding package designed to support further growth of the company.

Peter Smith, associate director, Structured Debt Solutions at RBS said: “It is great to be involved with a traditional local business which has enjoyed sustained profitability despite the threat of competition from overseas.

“Since the threat of such competition has materialised the company has continued to grow which is testament to the quality and efficiency of the business and its products. We look forward to a long and successful relationship supporting the business in a new era,” he added.

Lester Wilson of Watson Burton provided legal advice to the management team.

£30m Manchester Direct Communications Firm Acquired by Leading Independent

uat — Tue, 29 Jan 2008 10:30:00 GMT

K2 delivers direct one to one communications, via e-mail, print and other electronic media on behalf of some of the UK’s leading brands. The firm has become a leader in using data intelligently to understand customers, and target individuals with bespoke marketing information.

The deal that was structured by BPIF McInnes sees £30m turnover K2 that employs 300 staff become part of the world’s largest independent direct communications organisation. Blue-chip UK clients of the newly merged group include 90 percent of FTSE 100 companies.

Kevan Coleman, Chairman of K2, commented: “This is a fantastic opportunity to bring together two like-minded organisations, to the benefit of our combined client-base. In many areas, financial services being the most obvious, there is synergy, and therefore a stronger scale and presence for the dsi CMM Group.

Coleman, director Kevin Illingworth and 3i were the exiting K2 shareholders, and were advised by Alan Thompson at Mace & Jones.

The company helps its clients with innovative direct communications solutions across all media, from traditional printing to complex variable data output, digital print and the use of new media channels such email and web.

Dave Wilson, who led the deal for BPIF McInnes added: “The print and direct marketing sectors are changing with the tide of new media and technologies, and whilst many are left behind K2 has ridden the wave and this deal sees it take full advantage of its niche position.

“The deal offers excellent potential for further growth and the business will thrive as part of the complementary Group, with many more advantages, access to new markets and the ability to adapt and expand its capabilities.”

The expanded organisation has print, web design, data analysis, mail and distribution and fulfilment capabilities and centres in Rainham, Essex, Jarrow, Tyne & Wear and now Manchester.

Following the acquisition, the Group will employ 1,300 staff and is expected to turnover more than £110m in 2008.