Meet the detectives
Meet the detectives
The investors who unearthed a high growth business in pop culture collectibles in Blackburn
Hello Rainmakers,
Wouldn’t life be so much more fun if everyone sent press release with themselves illustrated as comic book heroes, or described their skills as superpowers?
Hold that thought, while I tell you that this week our subscribers have had Alex Turner’s analysis of the lobbying efforts of the private equity industry, ahead of the Budget next month.
We’ve also looked at THG’s surprising move to start the next chapter of the company’s so far lamentable life as a stock market company by proposing a surprising strategic pivot: demerging Ingenuity, supposedly the engine at the heart of the business.
On Tuesdays and Thursdays we have longer pieces where we look at all kinds of stories relevant to the wild ride of M&A in this country.
If you’re on a trial, please consider an upgrade.
We’ve also been sharing some cracking testimonials this week.
Don’t you just love a quirky investor?
Following a tip off from a local snout, this week we discovered German gaming and toy investor Saga Alliance which has invested in Blackburn-based distributor Heathside to support expansion across Europe, focusing first on France and Germany.
Based at Walker Park close to the M65, Heathside is a distributor and manufacturer of toys and collectibles with operations in the UK and the Netherlands.
Saga hasn’t disclosed how much they have paid, but in the year ending December 2023 Heathside made £5,292,017 in pre-tax profits on turnover of £27,560, 416.
But it’s Saga that raised a smile.
Saga Invest describes itself on its website as “like true business detectives” and that they “approach every new acquisition and project with a business analysis and strategic consultancy designed to help companies in the board games, toys, and publishing industries achieve their full potential.”
They even show pictures of their founders, Gregory Benassar and his fellow ‘pop culture veteran’ Alexis Desplats mocked up as comic heroes.
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THREE YEAR PROCESS LANDS HAPPY ENDING
Adrian Mole fans will perhaps know Ashby-de-la-Zouch as the home of one of the world's great diarists, but it's also where workplace consultancy and fit-out firm Blueprint Interiors is based.
This week, a three-year process to sell the company to management was finalised by chairman and founder Rob Day, widely-regarded as one of the nicest entrepreneurs in the East Midlands.
Rob has sold his company in an MBO to the highly-impressive duo of Rachel Biddles and Chloe Sproston. It'll be interesting to see what happens at Blueprint Interiors with this ambitious pair at the helm. We also look forward to Rob having a bit more time to catch up on a social basis. Congratulations to all.
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FORMER NICHOLS UNIT BOUGHT BACK BY FOUNDING FAMILY
Aimia Foods, the food group behind the Horlicks brand and a manufacturer of own-brand products, has been acquired by the Unsworth Family supported with facilities from HSBC and Beechbrook Capital.
The £120m turnover group, based in Haydock, had been owned by Cott Corporation since 2014 who bought it from the Unsworth family who founded, ran and developed the Aimia brand until its sale to Cott.
In the last set of accounts available the business made pre-tax profits of £6.5m on turnover of £95m to the end of 2022.
With a 40+ year heritage in the food and drink manufacturing industry, the Unsworth Family have extensive knowledge, experience and contacts to drive their ambitious plans.
Gary and Ian Unsworth originally founded their business in Burscough in 1981, sold it to Nichols Group – the listed company behind Vimto – before Gary’s son Rob Unsworth ran it, then sold it on in 2014.
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HUGE GAINS FOR BGF IN CARE DEAL
BGF is pretty pleased with itself this week after completing an exit which "represents one of the largest ever gains" for the fund.
It had backed Springfield Healthcare Group for 12 years with £31m as the single care home has grown into six care villages located across Yorkshire.
It had modest beginnings, starting out as just a single care home. But the business was able to win investment from BGF in 2012 to expand its care village model into more locations across the North.
BGF has now provided a total of £31m of growth capital across multiple funding rounds to support the creation of new care homes. And this includes a multi-million pound renovation of the former Terry’s Chocolate headquarters in York.
The success really has been dependent on "patient" capital.
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WRAY SELLS STAKE IN AIM LISTED FRANCHISE BRANDS
Investor and entrepreneur Nigel Wray has sold a third of his stake in Macclesfield-based multi-brand franchise business, Franchise Brands.
The Saracens Rugby Club owner sold 7 million shares at 160p each through his company Euroblue Investments Limited, netting him over £11m.
Previously the largest shareholder in Franchise Brands, he now has a total beneficial interest in 15,921,858 Ordinary Shares, equivalent to 8.22% of the Company’s total voting rights.
On Tuesday (16 September 2024) the AIM-listed company reported a 35% increase in revenue to £69.8m and a statutory profit of £3.618m, a turnround from the £611,000 deficit the previous year.
Most of the business consists of franchises for van based businesses such as Pirtek in Europe, Metro Rod and Metro Plumb, all of which benefit from the group’s central support services, particularly technology, marketing, and financial management experience.
Following Tuesday’s half year results a research note by Allenby Capital said the business was “significantly undervalued” and said in spite of the temporary macroeconomic headwinds, said a medium term fair value for the shares was 330p, more than double its present trading price.
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EVERY DAY IS A SCHOOL DAY - LEARNING ABOUT YACHTS
At a recent corporate finance round table, the conversation turned briefly to the struggles in the luxury yacht market.
The point being made was that sales of luxury yachts - "we're talking luxury yachts, not mega-yachts" - are a barometer of a certain section of the economy. And right now it is not particularly buoyant.
That hasn't stopped superyacht group Pendennis (our Rugby League and real ale correspondent isn't clear where superyachts fit on the luxury-to-mega yacht spectrum...) from buying its fellow Falmouth business Cockwells Modern & Classic Boatbuilding.
Cockwells employs 140 people across three sites in Cornwall and had been seeking support to continue its growth. Pendennis is now hoping the acquisition will prove to be plain sailing as it is brought on board.
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READY FOR THE UPTURN?
As the corporate finance community anticipates the end of a subdued and uncertain period, the upcoming Rainmakers Forum in Manchester on the 8th of October will explore the challenge of becoming deal-ready for 2025.
Catriona Lang and Nicola Merritt
Featuring insights and contributions from the winners of the Rainmaker Awards – Nicola Merritt and Catriona Lang – the event will look ahead at where the deals are going to come from in the year ahead.
With a more stable policy landscape expected following the general election and some economic headwinds easing, the seminar will concentrate on several key areas:
Current market demand and appetite
Changing culture and practice in the Rainmakers community
Funders’ primary areas of focus
The increasing significance of factors beyond financials, especially ESG and data
Opportunities within the North West market and Rainmakers’ role in driving growth
Event details to come soon. As well as the winning duo, the speaker line-up will also feature Giles Chesher from Squire Patton Boggs and Matt Hodgson from Claritas Tax, with more to be announced.
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RAINMAKERS CONFERENCE IS BACK IN 2025
The art of such deals is just the sort of thing which will pepper our 2025 Rainmakers Conference.
It’s being supported by BGF, Dow Schofield Watts, NorthEdge, Palatine, Shawbrook, Squire Patton Boggs, while PHD Industrial Holdings is a breakout room partner.
So save the date for Rainmakers 2025 – Wednesday 26 March, 2025 – and secure your place today at The Point, Emirates Old Trafford, Manchester.
It will bring more opportunities to network, more amazing speakers, more candid debate, more inspiring entrepreneurs, but also a chance to discuss the challenges of value creation.
The first Rainmakers Conference this March sold out, with more than 400 people attending to hear the insights and perspectives from entrepreneurs, investors and advisors, and to network with senior figures from across the corporate finance community.
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