Here we feature the latest equity and related investment deals and new in Welsh business
Lexington Corporate Finance is looking to drive deal flow on the back of investing in a new office in the south-west of England.
The Cardiff headquartered merger and acquisition advisory boutique has launched its new office operation at Queen Square in the centre of Bath. It is being led by new director James Cox following his recruitment from PwC.
The expansion into the south-west builds upon Lexington’s strong foundations and track record across South Wales, where the firm has grown from strength to strength since its launch in early 2016. Mr Cox brings with him a wealth of experience in the M&A advisory space. He started his career at DC Advisory, advising privately-owned businesses and private equity firms on both the sell-side and buy-side, later moving to UBS where he advised larger corporates. He returned to his hometown of Bath in 2021 to head up PwC’s south west corporate finance offering.
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Founder and managing director of Lexington, Gary Partridge, said : “We are absolutely thrilled that James has decided to join the Lexington team. It is an exciting time for our business at a point where the levels of M&A activity are on an upturn. James is exactly the type of advisor that fits into our business of providing honest, trustworthy and insightful advice to our clients. From the very first meeting, we felt that there was a match with Lexington and we are all excited to welcome James to our business.”
Mr Cox said: “Being born and raised in Somerset, I’m passionate about the region and the local business community. Bath, Bristol and the surrounding areas are home to so many exciting, high-growth businesses, which present fantastic opportunities for increased investment in the region.
“As a mid-market boutique corporate finance firm, Lexington can provide a differentiated, independent advisory service, adding significant value to local businesses trying to navigate investment opportunities, or an exit process in the future.
I’m very excited by the opportunity to work alongside the highly experienced team at Lexington and look forward to delivering excellent results for local businesses.”
SJ Environmental
SJ Environmental has completed a management buyout in a deal backed by Development Bank of Wales and advised on by Cadre Advisory and GS Verde Group.
The Cardiff-based business, founded in 2005 by Andrea and Stephen Burt, is a Dyn-Rod plumbing and drainage franchise.
The deal sees co-founders Andrea and Stephen, as well as shareholder and development director Lee Ramsey, leaving the business. The original ownership team were advised by the GS Verde Group. The Development Bank of Wales supported the transaction, the value of which has not been disclosed.
The management buyout sees husband and wife Matthew and Kirsty James team taking the business forward. Mr James has worked within SJ Environmental for more than 12 years and in management operations for the business for the last six years.
Ms James joins the management team and will be responsible for overseeing internal operations. -Cadre Advisory and Carbon Law Partners advised the management team, with GS Verde Group advising the exiting owners. The Development Bank of Wales supported the transaction, the value of which has not been disclosed.
Mr James said: “We are delighted to have completed this transaction and I am very excited to continue to grow SJ Environmental under the Dyno-Rod franchise.” The new owner said the management buyout provides continuity in client relationships, while also enabling a fresh approach to help grow the business further in the coming years.
Ms Burt, co-founder and outgoing director of operations said: “We are beyond proud that the succession of the business has come from within, and delighted to have concluded a transaction that will see Matt and Kirsty take the business forward. Myself, Steve and Lee wish them and the team every success for the future”.
Simon Hanna, franchise standards manager at Dyno-Rod, said: “Dyno-rod is committed to succession planning for all our franchisees and we are delighted that Matt and Kirsty have completed this transaction, we will continue to support them to ensure a seamless transition.”
Matt Sutton, director at GS Verde Group said: “We are pleased to have worked on this transaction, which will see continuity for the business. It was a pleasure to advise the outgoing owners with our ‘one team’ advisory offering across law, finance and tax. We wish all involved every success for the future.”
Shufflebottom
West Wales and family-owned designer and manufacturer of steel-framed buildings, Shufflebottom, has been acquired by Embrace Steel Group in a multi-million-pound deal.
Cross Hands-based Shufflebottom, which was established in 1977, is one of the UK’s largest independent providers of steel-framed buildings for the industrial, commercial, agricultural and equestrian sectors. The company also produces high quality structural steelwork for construction projects across the UK and beyond.
As well as its Carmarthenshire HQ, Shufflebottom has sales offices in the east of England and Scotland. Employing 85 and with annual sales in excess of £25m, it has a growing portfolio of projects for main contractors and major construction projects across the UK.
The exact value of the multi-million-pound deal has not been disclosed. Cardiff-based Gambit Corporate Finance acted as lead advisor to the shareholders of Shufflebottom on initiating, negotiating and structuring the transaction. Following the deal the Shufflebottom board of directors will maintain their current executive roles and play a key role in driving the business forward under Embrace’s ownership.
Embrace is a leading provider of steel frame building solutions, offering a comprehensive range of products and services to customers across various industries.
The Gambit team was led by Frank Holmes (partner), Simon Marsden (director) and Sean David (analyst).Alex Shufflebottom, shareholder and director of Shufflebottom, said:“Taking the decision to sell your family business is a huge one to make, and to have the right people with you on the journey was so important. It was an absolute pleasure to work with Gambit, particularly Frank and Simon, who drove the whole deal from start to finish. The deal that they negotiated whilst taking into account all of our requirements for Shufflebottom for the future was fantastic. The level of support and guidance that they provided along the way in such a professional manner was truly outstanding.”
Rebel Lion
Cardiff-based advertising agency Rebel Lion has secured a six-figure equity investment to support its growth plans.
With the financial backing of the Development Bank of Wales the company, which was set up in 2022, said it is on track to see revenues reaching £1m in what is only its second year of trading. It will also create 10 new jobs this year, with a further 20 planned in its next financial year. The start-up is a subsidiary of JFI – a group of creative and advertising agencies.
Rebel Lion founder and chief Matt Jones said: “Rebel Lion’s rapid ascent to seven-figure revenues within two years is a clear indication of our team’s talent and drive. As one of the UK’s emerging agencies, we’re energised by significant wins with Norton Motorcycles and The Sogno Group. The Development Bank of Wales’ investment is a vote of confidence that will fuel our plans to expand our Cardiff agency. It will also spur the development of our new venture, Islandr.TV, opening the TV advertising gateway for challenger brands. Our trajectory is set upward and accelerating.”
Joanna Thomas, deputy fund manager for the Development Bank of Wales, said: “Our equity funding is a great enabler for young and ambitious businesses with big growth plans. Our flexible approach means that we can structure deals that maximise growth opportunities and help businesses like Rebel Lion to scale-up by capitalising on technology advancements, creating real value for the Welsh economy. We wish Matt and the team every success.”
Hexigone Inhibitors
Baglan-based advanced manufacturer Hexigone Inhibitors is looking to accelerate its global expansion plans following a six-figure equity investment round boost.
Its latest £800,000 round was backed by early venture capital firm Waterspring Ventures (£257,000), alongside The Angel CoFund, Oxford Innovation Finance, and the Development Bank of Wales. The deal marks Waterspring’s third investment following equity injections into Welsh firms Operati and Tourhub. Cardiff-based
Waterspring is now looking to raise a new £2m fund from high net worth individuals to back early stage EIS (Enterprise Investment Scheme) eligible with firms revenues of £100,000 to £1m.
Hexigone is addressing a global problem with its micro-reservoir technology that is added to paints and protective coatings to prevent corrosion.
The £32bn anticorrosive coatings industry’s most effective corrosion inhibitor – hexavalent chromate – is being banned in the EU and phased out globally due to being carcinogenic, with the sustainable alternative zinc phosphate, – known to be less effective.With the industry in need of a solution, Hexigone Inhibitors was recently granted patents across several key regions, including Europe, the United States, China, and Indonesia.
Lanes Recovery
Caerphily-based vehicle recovery and maintenance business, Lanes Recovery, has been acquired out of administration in a pre-pack deal orchestrated by business advisory firm Quantuma.
Quantuma’s managing directors, Andrew Watling and Carl Jackson were appointed as joint administrators of Lanes last month and completed the sale of its business and assets shortly afterwards to Lanes Garage Recovery Services. All 59 staff were transferred to the purchaser.
Founded in 2018, with its roots tracing back to a family business established in 1951, Lanes provides vehicle recovery, maintenance and storage services and is located over four sites in south and mid Wales, Herefordshire, Worcestershire and Gloucestershire. The business reported a turnover of £4.6m in 2023/24. Following a difficult trading period during the pandemic, the company fell into arrears with its tax affairs and was unable to recover sufficiently which led to a winding-up petition was presented. The company approached its secured lender for support and was then referred to Quantuma for insolvency advice. In light of the company’s inability to source funding and the imminent advertisement and hearing of the petition, an accelerated sales and marketing campaign was undertaken by the Quantuma team, resulting in several expressions of interest from outside parties, but no offers were put forward.
The proposed administrators therefore concluded that a sale to the newly created company, run by relatives of the director, was considered the only way to save the business and maximise a return to creditors.
Mr Watling said:“We are pleased to have achieved such a positive outcome for Lanes Recovery, ultimately preserving all jobs and with no disruption to ongoing operations. This sale secures the continued trading operation of the business in its four locations.”
The administrators were assisted by professionals from Moore Barlow LLP who provided legal services and Axia Valuation Services who provided support with the valuation and sale.