Foresight Group has invested GBP2.75 million in the buy-in management buyout (BIMBO) of Lancashire-based Euxton Group.
The deal is the first investment made from the Foresight Regional Investment Fund (FRIF), which was launched in December 2015 having achieved first close at GBP38 million.
The FRIF is focusing on private equity investments into SMEs based in the North West of England, North Wales, and South Yorkshire, and is managed by Foresight’s team based in its Manchester office.
The fund can make investments of between GBP1 million and GBP5 million in local growth SMEs through a variety of deal structures including growth capital, management buy-ins and management buyouts. The fund achieved first close at GBP38 million in January of 2016 and has a target final close of GBP60 million.
Euxton Group, an e-commerce business in the gardening and landscaping sector, has grown rapidly over the last three years, having achieved annual sales growth of over 30 per cent. The group encompasses three companies – Hedges Direct, Best4Hedging and Impact Plants – all focused on various horticultural niches, in particular hedging.
Euxton has seen a significant increase in both the number of orders and the average order value year-on-year and is well positioned in a substantial market where online product sales are growing rapidly.
The Horticultural Trades Association estimates that the UK retail plant market is worth GBP5 billion, while the Internet Garden Products Market report predicts a 32 per cent rise in online garden product sales by the end of 2019.
Foresight’s investment will allow Euxton to further drive sales and capitalise on the increasing prevalence of ecommerce. Michael McVey will join as managing director, working alongside the existing team of Jamie Shipley, Kathryn Gallagher and Paul Francis. Claire Alvarez, who led the transaction out of Foresight’s Manchester office, will also join the Euxton board.
McVey says: “We are excited to be working with Foresight to help Lancashire-based Euxton Group continue its growth in the landscaping and gardening market. With the support of Foresight we will continue to develop the group through improvements to our websites, adding additional product ranges and expansion into overseas markets.”
James Livingston, partner, Foresight, adds: “As the first deal for the Foresight Regional Investment Fund, we are extremely pleased to have invested in Euxton Group. The business is a leader in its target market, and we look forward to working with the management team to create further value within the business and continue growth.”
Claire Alvarez, senior investment manager, Foresight, says: “It is a pleasure to mark Foresight’s commitment to the North West with this investment into Euxton, which has demonstrated such impressive growth over the past few years. I look forward to working with the management team to build innovative strategies for the business’s development nationally and internationally.”
