UK business Tinglobal, which specialises in the refurbishment and sale of IT hardware, has undergone a management buy-out as it looks to provide for the high demand from corporates to reduce costs and demonstrate green credentials.
Independent UK firm NVM Private Equity has invested £6 million to support the management buy-out. As part of the deal, Andy Vickers, ex-managing director of Canon UK and Ireland, has been appointed as business development director and will join forces with the existing management team, David Gutteridge and Mat Jordan.
Vickers says that large corporates are increasingly becoming open to buying second-user IT equipment in an effort to reduce costs and be environmentally friendly. He adds that the team is focused on exploiting these trends and driving growth through geographical expansion as well as the development of the product range and service proposition.
Tinglobal operates through Tindirect and Powercore International. The company is engaged principally in the European market for refurbished and reconfigured mid-range computer equipment including servers, storage, associated networking infrastructure, parts and services. It has a strong corporate identity and, with 95 per cent of sales relating to refurbished or reconditioned equipment, excellent green credentials.
‘Joining Tinglobal at this important point in the group’s development is very exciting’ says Andy Vickers.
‘There is a real global acknowledgement of the benefits that used hardware can bring to businesses in these tough economic times.’
SECOND-USER MARKET
Based in Gloucestershire and London Tinglobal currently employs 80 staff. The company is engaged in the £1.8 billion annual global B2B market for the refurbishment and sale of second-user and reconfigured mid to high-end IT equipment. Vickers says that it is estimated that 36 per cent of all new information technology and telecommunications systems enter the second-user market.
David Gutteridge, chairman of Tinglobal, comments, ‘The combination of NVM’s funding and support, and Andy’s strong corporate background and extensive industry knowledge, will help the business to develop and grow within this market.’
Peter Hodson, investment director at NVM who managed the deal, says, ‘We are looking forward to working with the current management team and Andy Vickers, who between them have extensive knowledge of the IT infrastructure industry. Andy will be an important addition to a team that has already driven the business to the forefront of its market.’
CLEAR STRATEGY
Gutteridge says that Tinglobal’s long-term strategy is to grow the core business based around its expertise in product specialisations by investing in a clear set of business development initiatives – increasing the geographical spread of business by deploying more language skills in its sales team, increasing sales staff numbers, promoting sales, supply and distribution capability to manufacturers and trade participants, and developing a greater volume of service-based recurring revenues.
NVM Private Equity is independently owned with over 25 years’ experience of investing in unquoted UK businesses. It is a generalist investor, managing £200 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK.
NVM looks for investment opportunities in UK businesses that have the right mix of growth potential and market vision. These companies may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2 million and £10 million.
Peter Hodson
Investment Director
NVM Private Equity
Tel: 0845 272 7014
Email: peter.hodson@nvm.co.uk
Web: www.nvm.co.uk
