The Business Growth Fund (BGF) has invested in Brecon-based retailer BVG Airflo, the parties have announced.
This represents BGF’s second investment in Wales, having backed specialist industrial scaffolding business SHS Integrated Services in September 2012.
Multi-channel retailer BVG is one of the fastest growing businesses in Wales, having grown from a single-trading venture in 1991 to a turnover of £70m today.
Revenues have increased by 70% and profits by 300% in the past five years alone.
The investment was led for BGF by Paul Oldham, Alex Garfitt, Edwin Davies and Dan Tapson. BVG is banked by HSBC who will work alongside BGF and BVG to develop the business moving forward.
The advisers to the transaction were:
- FDD – PwC (Tom Ayerst, Matthew Lister and Mark Comer)
- Legals – Geldards (Geraint Tilsley and Martyn Davies)
- For BVG Airflo
- Corporate Finance – Grant Thornton (Trefor Griffith, Alex Harris and Elliot Berg)
- Legals – Coffin Mew (Nick Gross)
Paul Oldham, BGF South West & South Wales regional director, declared that he has “always been impressed with the business” built up by the owners.
“We are investing in a company with a strong track record of growth and a highly experienced management team and we felt that BVG is well positioned to undertake further growth organically and through acquisitions,” he said.
“On a broader note, we are also delighted to be investing capital in a Welsh business and one that is something of a role model for the country’s business owners and entrepreneurs.”
BGF invests £6.3m in Broadband Satellite Services
BGF has also invested in satellite and telecommunications investment company Broadband Satellite Services.
The £6.3m provided will be used to accelerate the long-term growth strategy of the business and increase its offering of satellite communications services to remote areas.
BSS was formed in 2012 through the acquisition of Satcom Group and AND Group, and is now one of the world’s largest mobile satellite communications providers.
CEO Ian Robinson said the company takes pride in being “one of the most innovative and customer centric players in the mobile satellite services sector”.
“This investment will enable us to continue with this focus as we strengthen our world-class service offering to maintain our market leading position,” he continued.
“BGF’s investment enables us to make the next step in fulfilling the long-term growth strategy of BSS, allowing us to address additional growth opportunities and partnerships across key geographies and specific market segments.”