Hardware business nails £6m investment for growth

Hardware business nails £6m investment for growth
Olympic Fixing Group gets investment from PHD Equity Partners and Secure Trust Bank

Olympic Fixing Group, the Lancashire-based business which supplies hardware products to the merchant trade throughout the UK and Ireland, is all set for growth after a £6m combined investment from PHD Equity Partners and Secure Trust Bank.

Olympic Fixings supplies fixings, fasteners and DIY products to more than4,000 customers including electrical, building and plumbing wholesalers.

It offers a range of more than 3,300 products, many under its own brand label.

Founded in 1989 by chartered accountant Cliff Yates, the firm now employs upwards of 60 people in Altham, Lancashire and Bangor, Northern Ireland and has a turnover of just under £10m.

PHD Equity Partners will be working with management to grow the business both organically and through acquisitions.

The funding will allow the company to enhance its e-commerce offering and further support and develop its client base in Europe.

While managing director Yates and finance director George Brookes will stay within the company, there are also plans for a number of key appointments to be made to facilitate the eventual retirement of the management team.

The investment was led by Andy Dodd and Craig Richardson of PHD, the private equity arm of advisory firm Dow Schofield Watts.

Craig Richardson of PHD  said: “Olympic Fixing Group is a long established and solid business which prides tself on quality of service and the breadth of its product range.

“While it has achieved steady growth since its inception, there remains plenty of scope for further development in its offer to existing customers and through expansion.

“With the fragmented nature of the DIY supplies market, there is also potential for acquisitions. This investment will allow Olympic to pursue these opportunities and move forward into the next phase of its development.”

James Dow, managing partner, added: “Cliff and George are marvellous entrepreneurs and have done a fantastic job building a very special business. We are delighted they have chosen to work with us to help them fulfill their personal and corporate ambitions.”

Catriona Lang of Dow Schofield Watts transaction services carried out financial due diligence and Nick Woodward at Dow Schofield Watts tax provided tax advice to PHD Equity Partners. Paul Rimmer, Rosie Spencer and Will Munday from the corporate team at DWF provided legal advice to PHD while the banking team at Bermans advised Secure Trust. Vista provided insurance due diligence and Sanderson Weatherall carried out stock and AR valuation.

Olympic Fixing Products was advised by KBS Corporate. Andrew Dodd, of KBS Corporate, advised on the deal and said: “I think the success of this deal is attributable to the outstanding flow of communication between PHD and Olympic.

“Both parties kept each other in the loop at all stages of the process, making way for a smooth transaction. I am certain that the acquisition will allow for huge growth within Olympic, and I wish all involved the very best for the future.”

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