Yorkshire firm on hunt for acquisitions
ONE of the UK’s largest importers and distributers of tents, marquees and pop-up awnings is on the hunt for further Yorkshire acquisitions.
South Yorkshire-based Gala Tent is working on a growth strategy of bringing all of its manufacturing to its site in Rotherham. Currently, the majority of its manufacturing is done in China, where it has an office, but recently, it has made two Yorkshire acquisitions as it embarks on a journey to bring all manufacturing to the region.
Last month, the business bought Barnsley-based Print Day, which specialises in the design and print for brochures, cards, banners, feather flags and exhibition displays. The agreement saw Gala Tent investing £50,000 in new printing equipment as part of expanding its custom branded and printing services to customers. Gala also acquired format print business Sign Man this year and relocated it from Thurcroft to Farfield Park in Manvers to extend the company’s branding services to customers.
Jason Mace, managing director of Gala Tent, said the company is now on the lookout to buy more UK businesses in order to reach its goal of doing all of its manufacturing in the region. “Acquiring a sowing company would be ideal for us. We’ve got our eye on a Yorkshire company at the moment. Then we will take steps to get into spares (spare poles etc) and an engineering company later down the line. These are all baby steps to bringing all the manufacturing here,” Mace said.
“The business we can potentially bring together is huge but the main problem is still being able to be competitive on pricing. That will be our biggest hurdle but the way to get around that is to be innovative.”
The firm, which distributes around 12,500 tents each year is on track to reach a turnover of £7.5m this year. It employs a team of 30 but says as more manufacturing is bought over to the UK, this number will increase to 200.
Mace said Gala Tent also has opportunities to expand into new product ranges. The business has just launched a new range of carbon fibre heaters suitable for inside the marquees, as well as a steak stone product to cook your own steak.
The firm is also eyeing up international expansion. It has already developed export sales overseas in countries including Spain, Ireland, Russia and the Netherlands, but Mace said Gala now plans to get into Germany this year and then next year, the firm plans to push further European expansion.
Another area the business has concentrated on is investment in its systems.
Mace said the decision he made during the recession was the “best commercial decision” of his career.
“During 2008 to 2010, we accepted we were going to flat-line so instead of concentrating on growth, we concentrated on systems. It really paid off for us,” he said.
“In 2011 we went from a 25,000 sq ft warehouse to 53,000 sq ft warehouse – it was risky but we managed to do it.”
In 2011 to 2012 Gala saw growth of 10%, flat-lined last year but now, after launching further new systems, it is looking towards growth again.
“The key to expansion is making sure your systems are good,” Mace highlighted.
In the UK, Gala Tent is a preferred supplier for organisations including the military, NHS, the South Yorkshire Fire & Rescue Service, South Yorkshire Police Service, St John’s Ambulance and AA.
