Elaghmore raises GBP30m as pipeline of acquisition opportunities grows
Private equity fund Elaghmore has successfully closed an additional GBP30 million fund to add to its initial Elaghmore Fund 1.
Elaghmore co-founders David Manning and Andy Ducker, first launched the fund in December 2016 with an initial raise of GBP60 million from institutions in the US and Europe. Elaghmore has now raised an additional GBP30 million from US institutions to create Elaghmore Fund 1A. The new fund will help Elaghmore capitalise on a growing number of new acquisition opportunities in line with its strategy.
Focused on acquiring small to mid-cap UK industrial companies across multiple sectors, Elaghmore’s investment strategy is to use its Executive team’s proven operational skills to deliver significant growth and value creation.
Since the original fund launched, Elaghmore has completed nine acquisitions. Each company acquired shares similar attributes, such as a strong management team, and a market-leading position. While organic growth accounts for most of the value created by Elaghmore, for companies in fragmented markets, Elaghmore looks for opportunities to make bolt-on acquisitions to strengthen market position or enhance product oﬀering.
The nine acquisitions have been combined to create three distinct business:
The Total Vehicle Solutions (TVS) Group - brings together three of the UK’s leading specialist manufacturing firms that deliver solutions for the commercial and industrial vehicle industry. The firms are SB Components, Priden Engineering, and McPhee Mixers.
Alucraft & EAG – Alucraft is one of the UK and Ireland's leading designers, manufacturers and installers of architectural glazing systems. Elaghmore also acquired English Architectural Glazing Limited, one of the UK’s leading construction contracting businesses, which specialises in complex and dynamic building facades.
The Hexcite Group - provides design, communication, brand activation, display and merchandising products & services for major brand owners and retailers. It combines three firms – Blaze Signs, Gardners, and Kesslers International.
Together, the three Groups have a combined annual turnover of GBP170 million and employ more than 900 people across the UK & Europe. Despite the challenges of Covid-19, the businesses have continued to trade well.
The success of the three Groups has been driven by the hands-on approach of Elaghmore’s management team. All members have a track record of investing and successfully growing businesses through operational transformation. The Partners participate in every phase of the investment, including turnaround of the business, if necessary, its growth and development, and ultimately ensuring it is well placed to deliver returns for investors.
Andy Ducker, Co-Founder, Elaghmore Partners, says: “The additional GBP30 million will allow us to build on our success to date and invest in more businesses with great growth potential. It is a terrific endorsement of the work the team has done over the last four years, that investors have backed us with the new fund, Elaghmore Fund 1A.
“We already have a pipeline of interesting opportunities. The impact of the pandemic has seen the need for many companies to seek new investment, especially as Government support schemes end, and bank support is limited. Another driver is that many owners are concerned that possible changes to Capital Gains Tax rumoured for next year, means that this is the time to realise the value of their own investments. Once we acquire them, the financial strength of Elaghmore, and our operational expertise means we are confident we can help these businesses prosper and grow.
“This new funding is another exciting moment in the development of Elaghmore, and we look forward to creating significant value for our investors.”