When North West companies look to expand they need two things - quality advice and access to capital. Both are readily available from the region's burgeoning professional and financial community.
Because of market conditions regional deals in the £100 million plus bracket remain scarce. However, there has been a reasonable flow of sub-£20 million deals and activity in the venture capital market is showing signs of picking up.
And as many business sectors are facing a shake-up as depressed trading and competitive pressures take their toll. The strongest players are making the most of opportunities to extend their market share, which is helping to drive Merger & Acquisition activity. There has also been an increase in the number of businesses being bought from the administrators.
Oldham-based companies were involved in transactions worth over £150 million during the period 2000-02. An important feature of these deals was the willingness of local companies to use Manchester's based advisers.
The city's 'pinstripe' community has risen in stature in recent years and now offers the most comprehensive range of legal, accountancy, banking and venture capital services outside London's Square Mile.
Recent deals include Shiloh PLC's acquisition of Care and Mobility Ltd, TSS UK Ltd and of Hunters Mobility Service, businesses from all around the country, which are led from Shiloh's corporate HQ in Royton, Oldham. The former textile business, now widely diversified into healthcare, uses a range of advisory services including accountants BDO Stoy Hayward in Manchester, Leeds based lawyers Walker Morris and bankers Brown Shipley in Manchester.
Although there has been a slowdown in corporate activity across the North West, there is still plenty of deal generation activity going on, as professionals work hard to bring purchasers and vendors together. Corporate financiers are acutely aware that only a very high quality deal at a realistic price is likely to tempt purchasers and funders in the current climate.
There is also evidence of increased activity in the venture capital community as three new venture capital providers have opened offices in the Manchester in the last half of 2002, and the existing players continue to look for both exit and new investment opportunities.
Two new funds came on stream in 2002. The £35 million Northwest Equity Fund can invest up to £500,000 in growing companies and the Rising Stars Fund has raised £9.5 million to support early stage technology companies. Both funds were established with the help of the Northwest Development Agency.
| Date | Target | Deal Type | Bidder | Consideration (£m) |
|---|---|---|---|---|
| 2.01 | Security Printing & Systems | Institutional buy-out 100% | Authentos | 52.1 |
| 5.01 | Pifco | Acquisition 100% | Salton UK | 50.1 |
| 6.02 | Aerosol Products | Acquisition 50% | Robert McBride | 12 |
| 11 | PL Schofield | Minority stake | Cattles | 11.8 |
| 10 | Brimar, Cintel International | Management buy-out | Cintel | 8 |
| 11.01 | Independent Drainage Associates, OSS Technical Services | Acquisition 100% | Active Services | 4.5 |
| 1.01 | Quinoderm | Acquisition 100% | Medical Solutions | 3.7 |
| 5 | DH Haden | Acquisition | Pifco | 3.3 |
| 2 | Shiloh Spinning Business | MBO | Canvino | 2 |
| 11 | ICR (Engineers) | Acquisition 100% | Shiloh | 1.9 |
Rising Stars Growth Fund
Enterprise Ventures Ltd,
Unit F26,
Preston Technology Management Centre,
Marsh Lane,
Preston,
PR1 8UQ.
Tel: 01772 270570
E-mail: info@enterprise-ventures.co.uk
North West Equity Fund
Antler House,
Crouchley Lane,
Lymm,
Cheshire,
WA13 0AN.
Tel: 01925 759246
E-mail: mail@nwef.co.uk
Web: www.nwef.co.uk
TEChINVEST
NWDA,
Renaissance House,
Centre Park,
Warrington,
WA1 1XB.
Tel: 01925 400301 or 302
E-mail: techinvest@nwda.co.uk
WWW: www.techinvest.org
North West Community Loan Fund
Gordon Harter,
6 Swan Drive,
Cleveleys,
Lancs,
FY5 3FA.
Tel: 01253 850811
E-mail: gordon.harter@lif.org.uk
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