A cash injection of £3.5 million has been made in ‘purpose built people dryer’ company Haystack Dryers.
Investment firm NVM Private Equity has closed the deal in a Haystack, a business which designs and manufactures dryers for locations such as theme parks, water parks, swimming pools and spas.
According to the Dorset-based business, it generates the majority of its income through a ‘revenue share scheme’ which sees Haystack hold onto ownership of the dryer and receive a proportion of the income garnered from it once it is installed at a customer venue.
The dryers are said to work for up to five people at one time and are used at UK locations such as Dorney Park Whitewater Landing as well as for SeaWorld Group, Universal Studios and Legoland.
Paul Thomas, who became managing director of Haystack Dryers in 2006, six years after the company was founded, says the theme park market continues to expand ‘rapidly’, particularly in Asia where there is ‘substantial’ investment in the locations.
He adds, ‘We are also seeing an increase in the numbers of theme park attendees globally, so there is growth across the sector in which we are a global leader.
‘With the new funding and ongoing support from NVM we will be able to take advantage of the theme park boom and also expand this versatile product into new sectors.’
The deal is the second for NVM Private Equity in November after its portfolio company CGI International acquired Interver earlier in the month.
David Rolfe, investment director at NVM Private Equity, says, ‘Paul Thomas is very entrepreneurial and ambitious and has shown his ability to transform a UK invention into a global success.
‘Paul is hugely enthusiastic about the opportunities that lie ahead in a number of different sectors and we are delighted to be able to work alongside him to develop the business further.’
NVM describes itself as a ‘generalist investor’ and currently manages £200 million of funds. It typically provides between £2 million and £10 million per transaction.