Matrix Private Equity Partners (Matrix) has scored a hat-trick of new deals with the announcement of the GBP8.5 million management buyout (MBO) of Automated Systems Group Ltd (ASL), one of the UK’s largest independent reprographic and print solutions suppliers.
This is Matrix’s third deal in a month following the GBP9 million MBO of European recruitment provider RDL Corporation and the GBP4.5 million MBO of publishing business Faversham House.
“The strong end to the year follows a noticeable uptick in deal activity for SME funding since the summer.," says Mark Wignall, CEO of Matrix. "We believe that we have now entered a sustainable and attractive period for investment activity in the SME space and we expect to continue to deploy significant cash during 2011 into profitable businesses with strong prospects for growth. The three businesses we have recently invested in employ close to 250 people and with the support of our private equity investment; we expect this number to grow significantly in the future. SMEs can and will be the engine room for growth and employment creation as the economy improves.”
Matrix has taken a significant minority stake in ASL, which has annual revenues of over GBP10 million. Based in Cambridge, ASL was established in 1991 and has developed a strong geographic presence providing printing and copier services to schools and SMEs primarily in East Anglia and the Midlands. The company employs 60 staff and supplies the latest printing hardware technology and ongoing service and maintenance services to over 4,000 customers.
Matrix recently invested in the GBP9m management buyout of RDL Corporation Ltd (RDL), which is based in London and Woking and employs 70 staff. The acquisition came amidst a crop of private equity takeovers in the recruitment sector, following a rebound in the jobs market as market confidence returns. Matrix took a significant minority stake in the business. RDL was established in 1992 and has expanded its range of services, sourcing staff for over 300 major companies, matching niche professionals with hard to fill contract assignments and staff positions.
Faversham House, a family owned business founded in 1960, is a progressive multi-media business that publishes B2B magazines such as Utility Week, Europe’s largest environmental website www.edie.net and stages the UK’s no1 environmental exhibition, Sustainability Live! Matrix supported the GBP4.5m MBO of Faversham and has taken a significant minority stake in the business. The business employs over 100 people and is forecasting revenues of GBP10million in the current year.
