NorthEdge debuts with investment into FPE Global
CHALLENGER private equity firm NorthEdge Capital has made its maiden investment, taking a majority stake in FBE Global, a Stockport engineering company.
The firm, formed by former LDC heavyweights Grant Berry and Andy Ball with entrepreneur Dan Wright, has raised more than £180m to invest in mid-cap businesses based in the North.
FPE Global, a high-growth specialist engineering firm with an international customer base including British Sugar. It develops bespoke materials-handling processing systems for the cement, chemicals and energy from waste sectors.
Growth at the company, which has 60 employees in Stockport, has been driven by increasing levels of export sales, in particular to Africa, South America and India.
The deal will provide the funding to accelerate the company’s expansion through increased focus on sales and marketing alongside investment in infrastructure.
NorthEdge duo Ray Stenton and Phil Frame will join FPE Global’s board as non-executive directors, while a new finance director, Andrew Jackson and non-executive chairman, Stuart Lees have also been appointed.
NorthEdge partner Ray Stenton, who led the investment, said: “FPE Global has built an impressive client base with high levels of repeat orders driving growth.
“We believe there is a huge amount of potential in the business as it capitalises on its international growth opportunities. We are excited about working closely with an ambitious management team and using this investment to accelerate expansion.”
NorthEdge managing partner Grant Berry added: “We are delighted to complete the first NorthEdge deal. We believe now is a fantastic time to invest in the region.
“As an investor we believe that we have something different to offer. We are a highly experienced team that is passionate about the North of England and the businesses here. Our investment decisions are made locally and our focus is on growing Northern businesses.”
Chris Bailey, managing director at FPE Global, said: “The deal positions us perfectly to capitalise on the huge opportunities available in the market. This is a really exciting time for everyone involved with the company.”
Investment bank Altium advised NorthEdge on the investment. Grant Thornton provided financial due diligence, PMSI carried out commercial due diligence and tax structuring work was undertaken by PwC.
Addleshaw Goddard, comprising Neal Shepherd, Darren Harris and Gareth Dray, provided legal advice. Paul Jefferson at Gateley advised the management of FPE Global. David Easdown at Manchester-based George Davies Solicitors provided legal advice to the vendor, former chairman Tony Lees.
