Brecon-based BVG Airflo Group, one of Wales’ largest and fastest growing businesses, has secured a GBP10m investment from BGF (Business Growth Fund).
Established in 1991 by Chief Executive Iain Burgess, BVG has grown rapidly from a single person operation to a highly profitable non-high street multi-channel retailer generating turnover in the region of £70m in its current financial year. The business has increased revenues by over 70% and profits by nearly 300% in the last 5 years through a combination of organic growth and acquisitions.
The business has a substantial online focus, specialising in the sale and distribution of footwear and clothing, home and garden products, fishing tackle & equipment and sports nutrition products.
BVG has a number of routes to market for its products including a highly successful e-commerce function, mail order to its database of over 1m customers and a number of high profile B2B customers.
BVG controls almost every aspect of the business in-house from artwork production and website development through to product design, sourcing, buying, fulfilment, call centre and returns. The Group’s head office is in Brecon, South Wales, and it also operates and owns a 230,000 square foot distribution centre in Skelmersdale, near Liverpool, employing over 325 staff across both sites.
This represents BGF’s second investment in Wales having backed specialist industrial scaffolding business SHS Integrated Services in September 2012. A number of BGF portfolio companies from across the UK are also establishing a presence in Wales including fast-casual Mexican restaurant chain Barburrito which recently opened a site in Cardiff and Better Bathrooms, one of the UK’s leading bathroom retailers which also opened a store in the city.
Iain Burgess, Chief Executive, BVG Airflo commented: “Our aim is to become one of the UK’s leading e-commerce groups. We’ve made an excellent start and now have a highly scalable business backed up by a sophisticated IT system and fulfilment infrastructure which all combines to provide a high quality customer service offering. To continue this growth we knew we needed a strategic partner for the business which we felt would take the form of a high quality equity funder who would be able to bring both expertise and capital to the table.
“BGF fitted the bill for a number of reasons. We have kept control of the business whilst receiving a platform for further growth, BGF also bring significant non-financial support to the table. We are looking forward to getting going with BGF as part of the team.”
Paul Oldham, BGF South West & South Wales Regional Director, added: “I’ve known Iain and BVG for some time now and have always been impressed with the business that he and his team have built over the years. We are investing in a company with a strong track record of growth and a highly experienced management team and we felt that BVG is well positioned to undertake further growth organically and through acquisitions.
“On a broader note, we are also delighted to be investing capital in a Welsh business and one that is something of a role model for the country’s business owners and entrepreneurs. The economic backdrop across the UK is positive and we would encourage management teams across Wales to take a good look at what they might be able to achieve with an injection of growth capital into their company. That money could be used for working capital, acquisitions, store roll-outs and in a number of other ways.”
Trefor Griffith, Corporate Finance Partner at Grant Thornton commented: “Grant Thornton has worked with Iain and BVG for a number of years and we are very pleased to have advised on this transaction, which will provide the platform for further growth. Iain and the team have done a great job of building such a robust and strong business and with the additional capabilities added by BGF the company is very well placed to continue its impressive growth story.”
