West Midlands corporate deals review in association with Clearwater International
It has been a big month in politics. Theresa May triggered Article 50 and announced a general election. Fierce election campaigns in France, resulted in a run-off between two candidates that may ultimately decide the long-term sustainability and future of the European Union.
Meanwhile, relations between the US and Russia also hit their lowest point for a decade after the US retaliated against the use of chemical weapons in Syria.
Yet back home it was a domestic policy that drove a key transaction in the Midlands.
The Conservative Government controversially announced back in 2015 that it would offer 30 hours of free childcare for pre-schoolers, turning the spotlight firmly on nursery providers. The Conservatives claim that it will help families and is an incentive for working, but critics claim the scheme lacks funding and will end up costing parents, of younger children, more in the long run.
Derby-based nursery group Treetops was acquired by Staffordshire-based Busy Bees, the largest chain in the UK. The UK nursery market predominately consists of small chains and independent providers; therefore is ripe for consolidation.
Busy Bees, backed by Canadian private equity firm Ontario Teacher’s Pension Plan, is in a fierce battle with listed US nursery firm Bright Horizons to become the UK market leader. Bright Horizons staked its claim when it acquired the third largest UK nursery group Asquith Day Nurseries in November 2016.
The pressures on the NHS are well-documented. An increasing focus on promoting healthy living and preventative healthcare have consequently been a key priority for successive UK governments. It is perhaps unsurprising therefore that the active nutrition market is booming.
Lion Capital acquired Grenade Holdings, a Solihull-based provider of own label sports bars and drinks, which are stocked in retailers such as Tesco and Amazon. It has been growing its international operations and is a real Midlands success story featuring at 40th place on the ‘The Sunday Times SME Tracker’.
Primark-owned ABF also pledged its commitment to the market, acquiring both Reflex Nutrition a protein supplement specialist and High 5 which produces energy gel sachets.
A key electoral battleground in the UK will be the ability of the major parties to sell the attractiveness of UK businesses abroad post Brexit.
It was therefore really positive to see US investment in the Midlands. American private equity firm Pricoa Capital acquired Sutton Coldfield based 118 Group. 118 Group provides a business directory which underpins corporate listings on almost every search engine.
The business information market has undergone a rapid change in recent years, driven by technological advancements such as smart phones. Old print based business directories have been replaced by online listings, driven by ‘near me’ searches based on geo-locational data, provided by businesses such as 118 Group. A great example of international investors staking their bets in strong UK corporates.
