Welsh firms blazing a trail in job creation, expansion and acquisitions
Businesses across Wales are continuing to expand and raise growth finance. Sion Barry looks at five firms aiming to expand after new ownership deals – as well as one looking to raise millions on the London Stock Exchange
CREO MEDICAL
One of Wales’ leading life sciences firms, Creo Medical, has confirmed plans to raise what could be more than £20m to support its ambitious expansion plans.
The medical devices company, which listed on London’s Alternative Investment Market in December 2016, has a market capitalisation of £100m.
In a statement to the London Stock Exchange, the Chepstow-based surgical endoscopy specialist confirmed that its board has instructed advisers to commence work on a proposed placing of new ordinary shares to institutional and other investors.
The market update statement adds: “Initial board consideration was to raise in the region of £15-20m – but given investor feedback to date, the board may choose to raise a higher amount than this.”
Creo Medical said the money raised would enable it to continue to extend its training programme for clinicians, complete its development of the gastrointestinal suite of products, fund research and development into further applications of products and add distribution partners on a worldwide basis.
It said it would also accelerate product rollout by scaling up the current manufacturing capabilities.
And its board said it believes additional funds would make it an increasingly attractive prospect for strategic partners, as well as allowing for the exploration of possible strategic mergers and acquisitions.
The Development Bank of Wales, through equity investments of around £5m by its predecessor Finance Wales, has a 16% stake in the business.
PARAMOUNT INTERIORS
Cardiff-based workplace design company Paramount Office Interiors has been acquired in a management buyout.
The transaction was backed with funding from ABN AMRO Commercial Finance and also follow-in investment from GS Ventures.
Paramount Interiors’ client list includes the Office for National Statistics, ITV, GoCompare, S4C, KPMG, the Royal Mint and the Welsh Rugby Union. It is now aiming to build on the company’s success and explore future expansion plans and new markets.
Managing director Richard Jones led the buyout deal, the value of which has not been disclosed.
Previous owner Nigel Roberts will remain involved as the non-executive chairman and minority shareholder in addition to his role as director of Cardiff Parkway Developments, which last year received the green light from the Department of Transport for a new train station and major business park at St Mellons between Cardiff and Newport.
The deal was structured by Verde Corporate Finance (finance) and Greenaway Scott (legal).
Both advisory businesses are part of the multi-discipline Greenaway Scott Group, which also includes GS Ventures, which provided follow-in equity investment for the management buyout.
Mr Jones said: “I am very excited about what the future will hold for Paramount, myself and the management team as a result of the MBO.
“We have an exceptional team of people, strengthened by our recent investment in new young talent within our sales and design teams, who take a huge amount of pride in working together with our clients to ensure we achieve the highest possible standards.
“The MBO allows us to invest further in our people, our facilities and the service that we provide to our clients to ensure that we continue to be one of the best in our field.”
Verde Corporate Finance director Craig Blackmore said: “Paramount Interiors has developed a UK-wide reputation for creating innovative workspaces that transform businesses, so we were delighted to be able to support them as they embark on the next phase of their journey.
“Just like Paramount’s interiors projects, the MBO was well-planned and executed smoothly and efficiently, and will no doubt enable Richard and his team to build on the fantastic work that Paramount Interiors is renowned for.
Kelvin Thomas, director, Wales & West deal team at ABN AMRO, said: “It was a pleasure to work with such a committed management team with a clear strategic vision for moving the business forward.”
Nigel Greenaway, director of Greenaway Scott, said: “We were delighted to assist Richard and the management team at Paramount and also have shown our belief in the exciting future of the business by making a follow-in equity investment via GS Ventures into Paramount as part of the management buyout process.”
CAMTRONICS VALE
Camtronics Vale has been acquired in a management buyout with the backing of a £400,000 loan from the Development Bank of Wales.
Led by managing director Paul Macleur, the senior management team have acquired the £2m-turnover contract electronics manufacturing business from the parent company PhotonStar LED.
Based on Tredegar Business Park, Camtronics offers a full range of electronics manufacturing services and employs 31.
First established in 1993 as Novaspec, Camtronics was acquired by PhotonStar in 2011.
Managing director Paul Macleur has been with the business for 17 years. He first joined as a test manager and has been managing director since 2011.
Mr Macleur said: “We are delighted to have secured this investment from the Development Bank of Wales.
“It puts Camtronics Vale in an excellent position to exploit our extensive growth potential in this, our 25th-anniversary year of operations.
“We are looking forward to welcoming new customers whilst maintaining the levels of service and support that our existing customers,