BGF invests in Ultra Finishing

Financial details of the transaction remain undisclosed, though Ultra Finishing generated EBITDA of £3.2m in its most recent financial year, and BGF typically makes initial investments of up to £10m for minority equity stakes.

Following the deal, the company will look to expand by investing in new product development, due for launch in the spring and summer of 2017. It will also look to expand internationally across Europe and the US.

As part of the deal, BGF has appointed Alan White, who formerly held non-executive roles at companies including Topps Tiles, JD Sports and TM Lewin, as non-executive chairperson of Ultra Finishing. The company's current chair, Steve Heys, will step down.

BGF investor Richard Taylor will also take a seat on the company's board.

The investment comes six months after BGF provided £4m of follow-on funding to another north-of-England-based supplier of bathroom products, Better Bathrooms.

Company
Founded in 1981, Halifax-based Ultra Finishing is a manufacturer and distributor of bathroom furniture, shower trays, taps and valves. In addition to its own Hudson Reed, Ultra and Premier brands, the company also distributes products for third-party manufacturers.

Ultra Finishing generated a turnover of £63m in the year ending December 2015, with EBITDA of £3.2m, according to publicly available records. The business has a headcount of 350.

People
Business Growth Fund – Richard Taylor, Barry Jackson, Rob Johnson (investors).
Ultra Finishing – Dave Cullen (CEO).

Advisers
Equity – Pinsent Masons (legal); Dow Schofield Watts (financial due diligence); Tax Advisory Partnership (tax).
Company – Shulmans (legal); CBF Capital (corporate finance).

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• Topics
• UK / Ireland
• Expansion
• Consumer
• United Kingdom
• BGF (Business Growth Fund)