BGF backs Duncan & Todd with £5.6m

Karin Wasteson
10 December 2013

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Business Growth Fund (BGF) has invested ТЃ5.6m in Scottish optical chain Duncan & Todd.

BGF took a minority stake in the business. The growth capital will be used for expanding the chain's presence in the north east, to fund acquisitions, increase manufacturing capacity and support sales growth.

The market for UK ophthalmic goods and services was worth £3.54bn in 2012, while estimates suggest the sector will grow by 9.9% between 2013 and 2017 to a value of £4bn, according to BGF.

The deal constitutes BGF's eighth investment in Scotland, bringing its current Scottish investment total to more than £42m. BGF invests between £2-10m per deal in companies with a turnover between £5-100m.

BGF is backed by Barclays, HSBC, Lloyds, RBS and Standard Chartered, and has up to £2.5bn in capital under management. Its recent investments in Scotland include AFG Media, Aubin and M Squared Lasers.

Previous funding
Current managing director Frances Duncan led the MBO of Duncan & Todd in 2007.

Company
Founded in 1973, Duncan & Todd is an optical business with 23 retail stores in Scotland. The business operates three divisions: retail stores, DSE compliance and safety eyecare services for corporate customers, as well as manufacturing spectacle lenses.

The group has a turnover in excess of £10m and employs 182 staff.

People
Patrick Graham is a senior investment manager at BGF. Frances Duncan is the managing director of Duncan & Todd. Bob Brannan, current chairman of Vets Now and the William Jackson Food Group, will join the board as chairman. BGF's Graham has also been appointed to the board.