Beechbrook completes trio of investments from its third UK SME Fund
21 June 2022 - Beechbrook Capital has recently completed the first three investments from its UK SME Credit III fund in PermaGroup, FT Gearing and Retail & Asset Solutions. The fund, which has raised £130m to date, provides debt and minority equity capital to privately-owned companies based across the UK.
PermaGroup, through its trading subsidiary PermaRoof, headquartered in Derbyshire, is the UK’s leading distributor of residential EPDM roofing products. It also provides a range of other home improvement products under the Group’s brands: PermaLawn and PermaFence. Together with Owner Venture Managers, Beechbrook provided funding for growth and to roll out additional product lines in adjacent spaces. Adrian Buttress, current shareholder and Managing Director, will remain with the business to provide strategic guidance and support.
FT Gearing, based in Aldershot, is a longstanding manufacturer of critical precision gear components used in next-generation aircraft engines, actuators, and fuel systems. Beechbrook provided funding to support GS Precision’s (“GSP”), an affiliate of AE Industrial Partners, acquisition of FT Gearing. GSP is also a manufacturer of high precision aircraft components and identified FT Gearing as a complementary offering which will provide the group with enhanced capabilities and the ability to cross-sell between each company’s blue-chip customers.
Retail & Asset Solutions (“RAS”), headquartered in Kent, is a leading provider of supply chain management, stocktaking and merchandising services to the grocery and general retail sector where its customers include household names such as Tesco, Sainsbury’s, M&S and Primark. The funding, together with support from PNC, has provided an exit for existing shareholder, LDC, and allows the management team to invest further in the growth of its service offering. They plan to consolidate the company’s position in the UK and review expansion opportunities into several overseas markets where it sees significant growth potential.
Jon Herbert, Managing Director of Beechbrook UK SME Funds, commented: “We are delighted to have made a great start in the deployment of our third SME Fund. All three companies are excellent examples of both the quality of business we support and the types of deal we fund. We very much look forward to building our partnership with the management teams”
Alun Lewis, Owner Venture Managers Director, commented: “We found the team at Beechbrook very commercial and responsive as matters arose during the transaction process. They were also proactive in providing added value with the our due diligence requirements”.
Richard Addington, Managing Partner, Many Waters Capital, commented: “We were delighted to bring AE Industrial Partners and Beechbrook together on this project. We were particularly pleased by Beechbrook’s businesslike and practical approach to closing this transaction. Beechbrook demonstrated a mature understanding of the business and its risk profile and worked effectively to deliver a sound transaction structure for a successful financing.”
Lois Heywood, RAS CEO, commented: “We are delighted to be working with Beechbrook Capital on the next stage of our journey. The Beechbrook team impressed us with their detailed approach and their desire to really understand and get under the skin of our business. LDC provided a great initial springboard to build our business in which we are immensely proud. We look forward to working with Beechbrook to realise the further opportunities and the continued growth of the business”.