BGF makes £10m investment in property services firm
THE Birmingham-based Business Growth Fund (BGF) has invested £10m in property services group TCL Holdings Limited (TCL).
TCL is a provider of estate management and landscape installation, design and consultancy services to private and public sector organisations throughout the UK.
It operates under three separate brand names – TCL Landscapes, Clean Estates and Admiral Play – and its clients include Barratt Homes, Persimmon Homes and Redrow Homes as well as managing agents such as JLL, CBRE and Savills.
Headquartered in Northampton, TCL employs approximately 400 people. The business is forecast to turnover approximately £30m in FY14 and has consistently grown its turnover and EBITDA since 2009 despite the recession.
As part of the deal, BGF will take a minority shareholding in TCL and joining the TCL board as chairman is Stuart Black who was introduced to the company via BGF’s Talent Network. Black is currently executive chairman of Lakehouse Group and former CEO of Mears Group.
BGF’s £10m growth capital investment will support the company’s organic and acquisition–led growth.
TCL will also be supported by an £8.4m debt funding package being provided by Investec Growth & Acquisition Finance.
TCL chief executive Simon Cashmore said: “Despite the economic headwind, TCL has performed extremely well over the last few years and is now ideally positioned to support increased demand from the UK property market.
BGF investment director Mark Freer, who joins the TCL board, said: “Our investment in TCL is a great opportunity to back management to continue the company’s excellent growth story in an increasingly favourable market environment.
“Our funding is well suited to accelerate this through further strategic acquisitions in the sector and also through organic growth.”
Legal advice to BGF was provided by a Browne Jacobson team including Birmingham-based Paul Ray and Mike Jackson, while financial due diligence was provided by Mazars.
EMW Law and PwC advised TCL while Taylor Wessing provided legal advice to Investec.
The Business Growth Fund (BGF) was set up in July 2010 by members of the Government’s Business Finance Taskforce as an independent company with the aim of aiding the growth of SMEs.
It has the the financial backing of five of the UK’s main banking groups, Barclays, HSBC, Lloyds, RBS and Standard Chartered and has capital of up to £2.5bn to invest in eligible businesses.
BGF provides growth capital and typically invests between £2-10m for a minority equity stake.
