Government blocks Graphene deal
Blockage of Chinese deal for Graphene business leads our Rainmakers round-up
Hello Rainmakers,
Graphene, the semi-metal often described as the ‘material of the future’, was famously discovered by two professors at the University of Manchester.
It’s a million times thinner than a human hair and yet stronger than steel. Yet for a spin-out from the university that has sought to harness graphene’s strengths across a range of sectors, it has turned into a weak spot.
And the government are adamant that the Chinese aren’t getting their hands on it.
Curious? Read on…
This is your end of week wrap in what is supposed to be the quiet time of the year.
This is free to all who have signed up, however Rainmakers subscribers get two unique pieces a week, but also full access to our back catalogue of investigations, scoops, and insights, including updates from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors like Endless, and River Capital, Foresight, Mercia, Puma and LDC.
Versarien, now based down in Gloucestershire, tried to build an IP-led advanced engineering materials group that utilised proprietary technology such as graphene to create innovative engineering solutions.
It floated on AIM in 2013, raising £3m to fund its development. By 2018 its shares were trading at 182.5p. It sounded almost too good to be true. Two years ago it was rocked by the departure of founder and former chief executive Neill Ricketts amid a boardroom reshuffle.
Now its shares are valued at 0.01p and it has either offloaded the businesses and assets that made up the group, is in the process of selling them or is closing them down.
Earlier this month it warned its shareholders that they were unlikely to receive any return on their investment from these moves as it appointed Leonard Curtis to conduct “an accelerated sale process” of the remaining group assets.
To make matters worse, yesterday a planned asset sale through a joint venture with a Chinese company to use graphene in electric vehicle and other battery technologies was blocked by the Government on national security grounds.
The final order, made by senior minister Pat McFadden and published in an update on the government's website, prevents the transfer and use of both tangible and intangible assets, including intellectual property and know-how with potential dual-use applications.
While Graphene has a strong future, for Versarien – and its shareholders - it seems the wonder material has become tarnished.
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Nottingham-based Phenna Group is turning up the heat in Europe, snapping up not one but two Italian firms in quick succession.
First came Sfera, an advisory and engineering specialist, followed shortly by inspection and certification powerhouse IPI.
The Sfera deal, Phenna’s 13th acquisition this year, gives the group a foothold in regulatory consulting and operational management across Italy.
“We will continue to serve our clients with the same focus and expertise, now enhanced by international collaboration and the backing of a dynamic and forward-thinking group,” said Sfera CEO Daniele Giustiniani.
Hot on its heels, Phenna secured IPI, a Ministry of Labour-authorised firm offering inspections across lifting equipment, pressure systems, electrical systems and elevators.
Its certification arm, Certing, is recognised by the European Commission as a Notified Body. Giovanni Iocca, CEO of IPI, said: “Joining Phenna Group allows us to scale with strength while maintaining our specialist focus.”
Phil Marshall, CEO of Phenna Group, added: “This second acquisition in Italy enhances our technical portfolio and continues our European momentum. IPI brings deep expertise and regulatory trust to our Group, a perfect complement to our expanding TICC platform.”
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On Wednesday we broke the story that K3 Business Services had bought two personal finance businesses to add another leg to their growing business. It’s a reminder that the group formed by its now deputy chairman Tony “Fordy” Ford has had a roller coaster of a ride over the last two decades, nearly going bump at one time, recovering, then floating, eventually being bought by private equity, and continuing to grow.
Private equity backed K3 Capital Group has invested in two financial advisory firms, Pareto Financial Planning and Luna Investment Management, giving the business a fifth operating division in the financial services sector.
Founded in 2008, Manchester-based Pareto provides financial planning to individuals and SMEs, advising on areas such as investments, pensions, protection, tax planning and employee benefits.
Luna provides specialist investment management services to private clients and their advisers across the UK, centred around discretionary investment management, with a 5-star rated service and award-winning technology.
In December 2022 K3 was sold to US private equity firm Sun Capital in a £271m take private deal for the business that had floated on the stock market in 2017.
Currently the services offered by private equity backed K3 fit into four operating divisions: Business Sales; Tax; Restructuring, and Technology Solutions.
These include business brokerage Knightsbridge, a larger deals advisory business KBS Corporate Finance, and Knight Corporate Finance which specialises in M&A within the telecoms, technology, and software sectors.
The turnaround and insolvency firm Quantuma was acquired in August 2020.
The addition of a financial services arm to the group provides a personal as well as a business advisory plank to the group.
A few people at our Summer Lunch in Manchester on Wednesday had some great stories about Fordy.
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Earlier that day, in preparation for the big drop on Thursday I’d had a long chat to Dan Booth at Leonard Curtis about their deal to take investment from the highly ambitious private equity investor Pollen Street Capital. I was really impressed with LC’s story and Dan’s very people-focused approach to doing business and sticking to his principles. You can read the long interview I did with him on our Rainmakers platform here.
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A Leeds-headquartered provider of expert physiotherapy, ergonomic and rehabilitation services is braced for less pain and more gain in the next phase of its expansion after attracting private equity backing. Bestport Private Equity has acquired a majority stake in Sano Physiotherapy, which currently operates 43 clinic sites and employs over 100 full-time staff across Yorkshire, the North East, Derby, Nottingham, Leicester and the Midlands.
Sano was established in 2010 and since then has stretched out towards ambitious objectives, with eight acquisitions successfully completed so far. Its new backer will be helping it with a buy-and-build strategy. Bestport provides private equity to established, fast growing UK companies valued between £3m and £40m to support their organic growth. It has completed more than 50 investments in the UK lower-mid market and is particularly active in the healthcare services, technology, education and business services markets.
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Black Country law firm Higgs is making moves after 150 years, securing backing from private equity firm August Equity to grow, hire, and snap up more businesses.
With over 250 staff and recent acquisitions like Lewis Onions and M.R. Timms, the firm is ready to pass the bar on expansion.
Nick Taylor, managing partner, said: “With August’s support, we will build on our long-standing reputation, invest in our people, and sustain the core values that have defined our firm’s success for 150 years.”
With this deal, Higgs is clearly serving notice that it’s ready to appeal to new markets, and August Equity is on hand to make sure they don’t lose their case.
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We are hosting Rainmakers Lunches soon, an opportunity to network with leaders from the corporate finance sector.
These events will bring together the region’s Rainmaker community to discuss the deals market in 2025 and celebrate your successes over the last 12 months.
We will be joined by our Rainmaker of the Year in each city.
Joining us in Leeds on the 23rd of September will be Rainmaker of the Year – Paul Mann, partner in the corporate team and head of the private equity team in the UK at Squire Patton Boggs.
Also attending is the Changemaker of Year, Alexandra Fogel, partner and head of private north at EY, who scooped the award at our Rainmakers awards in June.
Chris Handy, who is Partner and Head of West Midlands for LDC, alongside him we will have Richard Swann from Inflexion, who won our Changemaker of the Year award. on the 2nd of October.
Also on the 2nd of October in Manchester we have Rainmaker of the Year – Michael Loudon, partner and head of the North West at Clearwater.
Alongside him will be our Changemaker of Year, Greg Holmes, from Palatine, who scooped the award at our Rainmakers awards in June.
Also providing insights will be Claire Alvarez of private equity firm Foresight, who won the finance leader category at the Leadership Awards 2024 and shortlisted for Rainmaker of the year.
Laura Wiggins, our Rising Star, will be on maternity leave and we send her our very best wishes.
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