La Salle advise on landmark IFW deal

Three men in suits standing outdoors with Foresight and La Salle logos overlaid.

La Salle are pleased to announce the completion of another deal.

La Salle advised Advantiv in a deal which represented a landmark investment from the Investment Fund for Wales (IFW).

As the IFW celebrates its second anniversary, the British Business Bank is marking the occasion with another significant milestone - a £3.5 million equity investment made by fund manager Foresight Group - into Advantiv Limited, an industrial services firm, located in Merthyr Tydfil and Pembroke Dock.

Deal summary:

After an unsuccessful sales process with a major UK broker, Andy and Alistair at Advantiv met with La Salle to explore their exit options. A shortlist of potential UK and international trade buyers was drawn up, and, at the same time, conversations surrounding PE investment took place. It became apparent that PE investment represented the best option for Andy & Alistair and early discussions with Foresight gained momentum. The deal concluded, which represented the largest single investment from the IFW to date.

Company background:

Advantiv is a UK based industrial services and procurement company that provides a broad portfolio of engineering products, technical site services, and procurement solutions to clients across the commercial, industrial and manufacturing sectors, positioning itself as a “one stop shop” for industrial supply and engineering support.

Andy Burgess, Director at Advantiv:

“This investment will support us in recruiting and developing high-calibre staff across sales, commercial and operational roles to build on our South Wales base. Strengthening our team will enable us to execute our growth strategy more effectively while maintaining high standards of service and delivery.

Our plan includes opening more locations to provide more local service support across the UK, which will enable us to expand our presence in existing markets and pursue new growth opportunities.

We offer an unlimited product and service portfolio and an ability to provide solutions to any industrial or commercial sector, private or public. Partnering with Foresight will accelerate our growth, increase employment and return some of the investment to the regions we operate in. This marks the beginning of an exciting new chapter for our team, our customers, and our vision for the future.”

Matt Dillon, Partner at La Salle added:

It was a pleasure to advise Andy and Alistair on the transaction. After understanding the business in greater detail and seeing the drive from the management team, it became evident that a Private Equity deal was more suitable. I look forward to watching the business flourish with Foresight's backing and thank all parties on the deal with their help.

Phillip Sampson, Principal, Private Equity at Foresight Group:

“We’re proud to support Advantiv as they accelerate their growth plans. This investment reflects the Investment Fund for Wales ability to back profitable, well established businesses with strong market position, where partial shareholder liquidity forms part of a planned succession. The funding will help strengthen the team, enhance systems and automation, and support expansion into new locations - positioning Advantiv to serve more customers with the same high standards of delivery. We look forward to supporting Andy, Alistair and the wider team through their next phase of growth.”

Bethan Bannister, Senior Investment Manager at the British Business Bank:

“This record £3.5 million investment by Foresight through the Investment Fund for Wales is a fantastic way to mark the fund’s second anniversary. It highlights how the IFW is backing ambitious Welsh businesses to grow, innovate and compete on a larger stage.

Over the past two years, the fund has gone from strength to strength – now reaching a total of more than £11m invested into 9 businesses right across Wales. We’re incredibly proud to see how the Investment Fund for Wales is helping to nurture home-grown talent, attract private investment and drive sustainable economic growth throughout the country.”

Advisors:

Corporate Finance (to Advantiv) – La Salle Corporate (Matt Dillon)

Legal – Hill Dickinson LLP

Financial/Tax Advisory (to Foresight) – Lewis Silkin