BGF gives Rutland Cycling a push with £2.8m investment
THE Birmingham-based Business Growth Fund (BGF) has invested £2.8m in East Midlands independent retailer Rutland Cycling.
The injection of growth capital will help Rutland Cycling invest in upgrading its current outlets as well as supporting its expansion strategy which involves opening four new outlets by 2018 and developing its online offering.
Rutland Cycling was established in 1981 by Dave and Ann Archer and is now managed by their son Paul Archer and David Middlemiss.
With a turnover of circa £10m per year Rutland Cycling operates from four locations and via its website, selling and hiring premium cycling products. The business has been named Independent Cycle Retailer of the Year for three of the last four years.
The Business Growth Fund was set up in 2011 to help small and medium-sized growing businesses with a turnover between £5m-£100m with investment growth capital. Operating through a seven office regional network, BGF has invested more than £250m in 48 companies from 17 sectors.
The fund is backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS and Standard Chartered.
The Rutland Cycling deal also saw law firm Browne Jacobson acting for the first time for the BGF.
The Browne Jacobson team was led by corporate finance lawyers Mike Jackson and Gavin Cummings.
Jackson said: “We were delighted to help BGF with its investment, which marks the start of an exciting partnership with Rutland Cycling and a great platform for management’s expansion plans.
“We are certainly seeing an upturn in investment deals reaching a successful completion, which is great news for the Midlands.”
Other advisers to BGF included Keith Fleming (financial due diligence) and Claritas (tax due diligence). Rutland Cycling was advised by legal firm Hegarty.
