Shaking it up - conference highlights, yacht deals and why netball is big news
Our weekly freebie is also full of Character (brands) ...
Hello Rainmakers,
Welcome to this weekly Friday freebie for all new subscribers and trialists for the Rainmakers platform, which I was told I didn’t quite plug enough at the conference on Wednesday.
At the end of the week, as we scour the regions for juicy deals stories we have a look at a few deals.
Rainmakers subscribers get two unique pieces a week and 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 River Capital, Foresight, Mercia and LDC. To receive new posts and support our work, consider becoming a free or paid subscriber, or sign up for a free trial....
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One of the highlights of the Rainmakers conference the fireside chat with our special guest, 🔸Applied Nutrition plc founder and group CEO Thomas Ryder who was in conversation with Michael Taylor. Thomas talked about the successful IPO of the Liverpool-based business, reflections on the process and insights about the strategic choices he has made - he even treated guests to a taste of their new collagen protein water, brand-new range of protein bars (which, by the way, are excellent).
After running a supplements shop straight out of school, Thomas went on to found Applied Nutrition in 2014, spotting a gap for high-quality, trusted sports supplements. Fast-forward to today, the company is now valued at £350m after floating on the London Stock Exchange in October.
It’s the fastest-growing UK sports nutrition brand, backed by JD Sports, and its products are now in 80+ countries and on shelves at Tesco, ASDA, Walmart, Superdrug, and more. Applied Nutrition is also the official nutrition partner for Fulham FC, Rangers FC, Paddy the Baddy, and Meatball Molly.
What struck me most was Thomas’s passion - not just for the business but for keeping it rooted in Liverpool while taking it global. It’s clear he’s only just getting started.
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Yacht rock
Fairline Yachts is staying afloat as Bronzewood Capital, captained by former Spurs vice-chairman David Buchler, throws it a lifeline.
The Northamptonshire boat-builder hit choppy waters in January, capsized into administration, and is now hoping the investment firm can steer it back to shore.
Bronzewood Capital, the private equity arm of advisory firm Buchler Phillips, has vowed to keep production anchored in the UK, ensuring Fairline’s reputation for luxury craftsmanship doesn’t go overboard.
The company’s 250 employees have been holding their breath longer than a deep-sea diver, waiting for insolvency specialists Alvarez & Marsal to chart a new course for the business.
With short-term funding secured, Fairline could soon be cruising in calmer waters - assuming no one rocks the boat.
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Fibre provider
For those of us sitting pretty in locations with fast broadband speeds, it can be easy to forget that even today there are plenty of people in the UK struggling to get fully plugged into the digital revolution.
A deal revealed this week should guarantee thousands more of these households can enter online modernity. Telecommunications network provider, CityFibre, is acquiring Hull-based Connexin's full fibre infrastructure. This is designed to establish a foothold across Hull and East Riding and enable the expansion of CityFibre's footprint by up to 185,000 premises.
And in good news for people still battling for more bandwidth, CityFibre will be taking on Connexin's Project Gigabit contract to roll out fast, reliable gigabit-capable broadband to over 34,000 "hard-to-reach" premises. Project Gigabit is crucial to achieving the government's target of full UK gigabit coverage by 2030.
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Shooting for hoops
Knighthead Capital is netting big this week, scooping up a major stake in the Birmingham Panthers netball team.
With netball rising in popularity, the Panthers are joining the Netball Super League’s journey to professionalisation in 2025.
But that’s not all - Knighthead has already scored a 49% stake in the Birmingham Phoenix for The Hundred franchise, making them a true all-star of Birmingham sports.
The investment firm is also planning a £3bn Sports Quarter in East Birmingham, complete with a 60,000-seater stadium, training facilities, and a new academy.
The Sports Quarter is set to create 8,400 jobs and bring in £370m of growth each year, with international events on the way.
Looks like Knighthead is on track to score big in Birmingham.
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Multi-channel business supplies and service distributor, Evo, has been refinanced with increased funding facilities through its existing lending syndicate of Leumi ABL and Close Invoice Finance Ltd.
This has enabled Andrew Gale, Evo CEO, to lead a management buy-out, which facilitates a successful exit for funds managed by Endless LLP, evo’s long-standing private equity shareholder.
Headquartered in Normanton, the evo group has grown significantly under Endless’ ownership. It is now made up of six different brands, generating more than £500m of sales and employing 2,000 people.
Endless acquired Vasanta in 2009, and has supported the acquisitions of Office2Office in 2014, Premier Vanguard in 2019, and Complete Business Solutions in 2023.
The group also acquired the Staples.co.uk license and Staples corporate book of business in 2020 and the 5Star brand in 2024 to further diversify both its product offering and routes to market.
Gale will continue as chief executive supported by Jon Maxted, evo CFO and the evo Trading Board and team.
This is evo’s third deal with Leumi and second with Close Brothers. The facilities provided are an £80m invoice finance facility and £13m in term loans.
Endless was advised by Walker Morris LLP. Leumi and Close were advised by DLA. Gale was advised by Peter Considine, Finance Eagle Ltd and BDO.
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A test of Character
Character World Brands, a North West business set up to partner major entertainment brands onto homeware goods has been sold to US-based Bioworld Merchandising.
The business had been owned by Palatine private equity since it backed a £36m management buyout by brothers Mark and Danny Schweiger in 2014.
Based in Cheadle, Greater Manchester, Character World Brands partners include Lego, PlayStation, Peppa Pig and leading Premier League football clubs, to manufacture and supply a wide range of licenced homeware products to retailers across the globe.
In 2023, as the brothers stepped into non-executive roles, CEO James Walker acknowledged the business had been through “a year of turnaround, seeing us re-frame our business for growth”.
In its last set of published accounts to 30 September 2023 the business posted a pre-tax loss of £0.2m (2022: Profit £0.6m), but said its £0.6m EBITDA from sales of £24.5m (2022: £26.7m) underpinned a forecast for the next year to show revenue growth and continued profitable EBITDA generation.
However, financial terms of the transaction were not disclosed. Dallas-based Bioworld will use the acquisition as a springboard for growth in Europe.
Grant Thornton’s North West deals team advised the shareholders and was led by Corporate Finance Partners Pete Terry and Matthew Bryden-Smith and assisted by Cariad Lightfoot, Ammen Arya and Tilly Das-Gupta.
Matthew Bryden Smith said: “Character World Brands has an excellent tradition in the licensed brands market place and long-established partnerships with some of the world’s best-known companies, making it an ideal strategic acquisition for Bioworld Merchandising, which is looking to accelerate its growth in the UK and Europe.”
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Essential ingredients of a good deal and why sustainability matters
People, relationships and a healthy dose of realism are the essential ingredients for a thriving relationship where building value is the aim.
A mix of private equity investors, a lender and three entrepreneurs leading PE backed businesses came together at TheBusinessDesk.com’s annual Rainmakers Conference.
Speaking on the Road to Value panel, they shared insights into the critical elements of successful investment partnerships and value creation.
Ian Langley, founder of Manchester-based Airswift Group and chair/non-executive director of publicly-listed and PE backed organisations, said choosing the right private equity partner is at the heart of driving value.
He said: “One of the most important things when you decide to do your private equity deal is understanding the personality of the people you're going to be dealing with and the culture of the firm.”
The panel unanimously agreed that people and relationships are the cornerstone of successful investment deals. Gary Tipper, founder of private equity firm Palatine, stressed that understanding team dynamics is crucial. “The key thing in any PE deal is the team,” he said, highlighting the importance of carefully selecting management teams whether through recruitment or supporting the existing team.
James Salmon, head of financial sponsors at Shawbrook Bank, offered a succinct yet powerful insight into the core of successful business lending and investment.
“People and relationships are key,” said James encapsulating the fundamental principle driving successful private equity and banking partnerships.
Steve Dolton, who joined The Translation People as executive chairman following its Palatine-backed MBO in 2023, emphasised the importance of partnership.
He said: “The most important thing was that we were in partnership together,” he explained. “Palatine let us get on and run the business, and that was critical for our Relationship.”
When addressing how to handle difficult business situations, Steve offered crucial advice about transparency and proactive communication. He said: “If you try and bury your head in the sand and pretend it will go away, it doesn’t. You need to get into it quickly. You need to explain to them what the challenge is, but most importantly you need to propose solutions.”
Ruth Percival, CEO of Contollo and Lucie Mills, partner at private equity firm, NorthEdge which invested in Contollo, provided a compelling narrative of collaborative leadership, showcasing how a consultative approach can drive growth.
Ruth’s strategy of creating a “collegiate mindset” and being “unashamedly ambitious” has yielded impressive results, including high staff and customer retention, and consistent revenue growth.
Sustainability emerged as a critical theme, with panellists arguing it’s no longer a box-ticking exercise. Gary pointed out that many companies now require 20-30% focus on sustainability, with potential contract wins directly linked to robust sustainability strategies.
Lucie highlighted the broader economic significance of strategic investments. “This isn’t about prioritising impact or ESG above our role as investors,” Lucie said. “This is about a way to create more value in the investments that we make. I also think from a regional perspective, a lot of the work that we’re doing is around understanding the regional impact of our investments.”
Integration of acquired businesses was another focal point. The panellists warned against lengthy earn-out periods that can hinder smooth business integration. They advocated for creating a culture of mutual understanding, active listening, and recognising the unique nuances of each business and industry, while Gary added that a healthy dose of ‘realism on both sides about what can be achieved’ is also essential.
The panel’s key takeaways were clear – the successful road to value is about more than financial metrics. It requires a holistic approach that prioritises people, maintains open communication, embraces sustainability, and remains adaptable to changing environments.
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This week on Rainmakers Sheryl Moore caught up with Glenn Paxman, who has worked closely with the Department for Business and Trade as a Northern Powerhouse Export Champion and, on behalf of the West Yorkshire Combined Authority, also chairs the West Yorkshire Healthtech Cluster, while he was away on a trip to China with his business Paxman Scalp Cooling.
It has been a busy week for Paxman. A few days after revealing the £11.6m takeover of Texas-based Dignitana, which is being financed by existing cash, Paxman announced the issue of almost two million shares, raising 123.5 million Swedish Krona (£9.4m).
The full story spans the time Paxman was first interviewed by Sheryl and how he pioneered a scalp cooling system that enables people having chemotherapy treatment to maintain their hair.
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TheBusinessDesk.com’s Rainmaker Awards return this summer and will showcase a wider cross-section of the region’s deals community.
The hotly-contested regional corporate finance awards will continue to recognise teams, individuals and deals, and the shortlist and winners will be decided on by the community, as always.
This year we are asking all firms to submit a short entry, along with the key deals they have advised on, to ensure our judges have the full information when making their selections.
Once entries have been submitted the shortlists will be drawn up in the usual way, with TheBusinessDesk.com hosting 40+ leading corporate finance professionals on a judging day. Those shortlists are then voted on by a wider group of people from across the community, on a strict one vote per firm basis, to decide our 2025 winners.
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