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BGF successfully exits investment in Cennox

BGF has exited its investment in Cennox – a provider of services to the ATM sector. The business has been acquired by US-based investment firm, York Capital. 

BGF first invested GBP3 million in Cennox in June 2012 and subsequently put in three follow-on rounds into the business, taking total investment to GBP17 million. 
Founded in 2006, Cennox provides integrated services and solutions to the financial services, commercial, retail, and transportation industries. Cennox is a leading independent, multi-vendor service provider to cash automation machines and self-checkout kiosks. The Company’s global operations span 1,500 employees that cover the United States, United Kingdom and mainland-Europe. Since its founding, Cennox has scaled through 15 acquisitions and consistent organic growth. Today, Cennox is regarded as a provider of choice for many major financial institutions, and is valued for its deep industry expertise, consistent high-quality service, and breadth of solutions. 
Over the last nine years, BGF’s equity investment has enabled the Surrey-headquartered business to fund working capital, invest in additional staff and ramp up its international operations. At the point of investment, Cennox was a UK-only provider of ATM services and signage. Following its acquisition of US-based Sterling Group in 2013, which was funded with BGF’s first follow-on investment, Cennox has grown rapidly, with further acquisition-driven expansion in the US, Europe and the UK.  
BGF’s investment and the growth that followed it also enabled the company to access significant debt funding from its shareholder banks. 
Clive Nation, Founder and CEO of Cennox, says: “BGF has played an important role in the growth of our business, helping us to expand internationally, while also building out our team and services. BGF brought the perfect combination of a long-term, investment approach and has been a trusted partner to the business since 2012. With York Capital on board, we see significant scope for further international growth. York’s industry knowledge, network and expertise will be highly valuable as we strategically expand our solutions and service offerings.” 
William Gresty, investor at BGF, who led the exit, says: “Cennox was an early investment for BGF and as such it is a fantastic example of the long-term patient capital approach of our investment model. Since we backed Clive Nation, Nick Cockett and Roy Dodd in 2012, Cennox has grown rapidly both in the UK and internationally and it is now a fully-fledged global player in the ATM and banking services sector. We’re extremely proud to have helped the company reach its long-term goals and we wish Clive and the team and York Capital all the best on the next stage of their growth journey.” 
This transaction marks BGF’s 11th successful exit in 2021, generating significant returns for all shareholders. Recent deals include: BGF’s exit of Nottingham life sciences incubation business, BioCity, and the exit of sustainable ecommerce returns platform, ReBound. 
Advisors to the transaction included – BGF: Stephenson Harwood LLP, and  
Cennox: TM Capital, Dentons US LLP, Herrington Carmichael LLP .

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