BGF invests £10m in York Mailing

Alice Murray
15 July 2013

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The Business Growth Fund (BGF) has invested ТЃ10m in UK printing business York Mailing, a producer of retail flyers, media inserts and catalogues.

The growth capital investment sees BGF taking a minority stake in the company. The investment, which was bolstered by additional funds from asset-based lending and existing cash facilities, will support the company in updating its printing presses as well as providing more volume capacity.

BGF believes that despite a difficult print publishing market, with advertising increasingly moving online, York Mailing has found a stable market niche as supermarkets use flyers and media inserts as part of their marketing strategies and retailers use brochures to drive online traffic.

Company
York Mailing comprises two web offset printing companies; York Mailing, which produces retail flyers and media inserts; and Pindar Scarborough, which produces catalogues predominantly for the online retail market. Customers include UK supermarkets and retail businesses including Marks & Spencer, Tesco, Lidl, Iceland, The White Company, Cotton Traders and Boden.

The company generated a £75m turnover and a £7.6m profit in the year ending May 2013. York Mailing, founded by Chris Ingram in 1999, is based in Elvington, near York.

People
Chris Ingram is CEO of York Mailing and Mike Newbould is COO. Richard Taylor, senior investment manager at BGF, led the deal.

Advisers
Equity – Grant Thornton (Financial due diligence); Pinsent Masons (Legal).
Company – Lupton Fawcett, Lee Priestley (Legal); DC Advisory (Corporate finance).