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• Roofing contractor goes up in the world with Key Capital Partners investment
• Neville Johnson finds perfect fit with Key Capital Partners
• Key Capital Partners’ first investment in Templine Recruitment
• Key Capital Partners announces final close of first fund
• Key Capital Partners expands operations
• Key Capital Partners first close raises in excess of £50m
• Key Capital Partners Launches New Website

Roofing contractor goes up in the world with Key Capital Partners investment

The Leeds office of private equity firm, Key Capital Partners (“KCP”) has completed its second deal in just over a week, after investing £2.3 million in thriving North East based roofline contractor and supplier, JD Plastics and Rooflines Ltd (“JD Plastics”), valuing the business at in excess of £5 million.

The deal sees KCP acquire a majority stake in the Bishop Auckland-based business, which has developed a strong presence as both a sole and sub-contractor in the social housing sector in the North East since its foundation in 1994 by father and son team Graham and Jamie Dent.

Consisting of two distinct operations, JD Plastics installs roofline products in housing refurbishment projects, while its supply division provides Swish-branded roofline products directly to house builders. The company’s success to date has seen sales climb from c £1.5m in 2006 to a projected £5m in 2008, with KCP’s investment set to play a significant role in furthering company growth.

Following the deal, Jamie Dent will remain in place as managing director, while KCP introduces two senior executives, Jolyon Harrison, former executive chairman of NorthCountry Homes, as chairman, and David Bradley, former UK Finance Director at Wolseley, as finance director.

Jamie Dent said: “Our partnership with KCP puts us in an excellent position to take advantage of a buoyant refurbishment market. Not only will it provide the investment required for us to roll out the benefits of our products and services in the North East and beyond, but it also readies the company for significant growth in the future.”

Peter Armitage, partner at KCP in Leeds said: “JD Plastics is a company with a tremendous market position in the North East. Its management team has made great strides in capturing a share of a niche market, which has made it an excellent investment opportunity. We look forward to supporting the company as it replicates this success across the North of England.

The KCP team of Peter Armitage and Mark Buttler was provided with legal advice by a team led by Nick Watson and Jo Stephenson at Hammonds in Leeds. Financial due diligence was performed by Tait Walker in Newcastle, led by Michael Smith. Yorkshire Bank, led by John Bullock, provided debt funding for the transaction. Graham and Jamie Dent were advised by corporate finance advisers Neville Bearpark and Zara Lane at Newcastle accountants unw, and received legal advice from Anthony Walters & Co, along with accounting advice from Paul Anderson of Jackson & Anderson Chartered Accountants.

Neville Johnson finds perfect fit with Key Capital Partners

The Leeds office of private equity firm Key Capital Partners (“KCP”) has backed the incumbent management team in a secondary management buyout of Trafford Park fitted furniture company, Neville Johnson.

Neville Johnson is a leading designer, manufacturer and installer of high quality bespoke fitted furniture for home studies, bedrooms, lounges and home cinemas. Targeting high net worth individuals, its recent success has been driven by a reputation for quality coupled with a high level of customer service and satisfaction.

KCP has invested £4.25 million for a majority stake in the business in a £12.5 million transaction following the exit of Endless LLP following its investment in 2006. The management team are re-investing the majority of their proceeds from the sale, demonstrating their confidence in the future of the business. Driven by capital investment, product development and an enhanced marketing strategy, Neville Johnson has seen sales increase from £12 million to £17 million during the period of ownership by Endless. The company aims to continue this impressive growth with KCP’s support and investment.

Nigel Pailing, CEO of Neville Johnson, said: “We fully expect to forge a strong partnership with KCP and we will be working closely together to maintain our current level of growth. We’ve had a great experience with Endless and I am sure we will see similar success with the team at KCP.”

Key Capital Partners’ first investment in Templine Recruitment

Independent private equity fund, Key Capital Partners (KCP), has made the first investment from its maiden fund, backing the management buy-out of a Birmingham-based recruitment company.

Templine Recruitment Limited, which has branches in Leeds, Luton, Coventry and Leicester, provides temporary labour to customers in the distribution, warehousing and industrial sectors. The company also provides ‘on site’ recruitment services to a number of major logistics and distribution companies.

KCP has invested £4.3million to acquire a significant minority stake in the business, and back the management team led by managing director Tony Bucciero and newly appointed non-executive chairman, Stewart Rogers.

Partner at KCP, Owen Trotter, who will also join the board of Templine as a non-executive director, commented: “Templine has a clear focus on customer service, which has resulted in impressive growth over the last few years. Tony and his team have a strong plan for the continued development of the business and we are looking forward to working with them.”

Tony Bucciero added: “The distribution, warehousing and industrial sectors have remained particularly buoyant throughout the UK and have a strong need for dedicated recruitment services. We will aim to continue to build on the good reputation we have in this sector and expand on the services we offer to respond to the needs of the market.”

Senior debt and working capital facilities for the deal were provided by Yorkshire Bank Specialist and Acquisition Finance, led by Ian Howey and Ian Mansell.  Commenting on the deal Mansell added: “We are delighted to have supported Key Capital Partners in their investment and  are particularly pleased that this has involved a Birmingham based business with excellent prospects, led by a dynamic management team.”  
KCP was advised by Sean Fitzgerald and Adrian Cutler of Cobbetts and Graham Elsworth and Dougal Baxter of BDO Stoy Hayward, whilst Templine’s management team was advised by Simon Clewlow and Martyn Pilley of Grant Thornton and Paul Wakefield of BPE.

Simon Clewlow, assistant director at Grant Thornton in Birmingham, commented: "This transaction demonstrates that, in the mid-market, bank and private equity appetite for high quality growth businesses such as Templine remains strong, despite fears about the impact of the recent credit crunch.

"With Tony's drive and eye for customer service, coupled with the KCP team's sector credentials and their ability to add real value to the business, we expect Templine to be one of the big success stories of the next few years."

Key Capital Partners announces final close of first fund

Key Capital Partners (KCP), the UK-based private equity fund management company founded to address the ‘equity gap’, has announced the final close of its maiden fund.

KCP, which was launched in December 2006 and first closed in April 2007 at more than £50 million, has received additional commitments from a number of new investors, including local authority pension funds, family trusts and high net worth individuals. This takes the total funds raised to £100 million.

KCP, whose three investment partners are ex-Granville Baird and Apax Partners, is focused on making investments in the ‘equity gap’ and describes its ‘sweet spot’ as being in the £1m-£5m equity range, with the ability to complete larger investments.

The fund is targeting growth businesses throughout the UK and will look at all later-stage transactions, including MBOs, MBIs, IBOs, development capital deals and partial realisations. Its blue chip investors include SVG Capital, West Yorkshire Pension Fund, East Riding Pension Fund, West Midlands Pension Fund and the Cayzer Trust.

Commenting on the close, partner, Mike Fell, said: “Our initial research showed that there are around 15,000 UK companies within our target market and very little competition. Our investors needed little convincing of the market opportunity and this partly explains the speed at which we were able to raise the fund.”

Fellow partner, Peter Armitage, added: “Our aim is to become the UK market leader in this space and the first port of call for anyone looking for sub-£10m investments. To achieve this, we are already planning to extend our office network and increase the size of our team.”

Owen Trotter, partner, said: “It is difficult to think of another team in this space with our experience and track record and that is why we have been able to secure our blue-chip investor base.”

Key Capital Partners expands operations

Key Capital Partners has strengthened its operations with the addition of a new investment director.

Based in the company's Leeds office, Mark Buttler joins from KPMG Corporate Finance, where he was based in Leeds and worked across the North of England on middle-market private equity and M&A transactions, and nationally in the information and communication sector.

In his new role, Mark will be responsible for developing and maximising opportunities from his advisory and business contacts in order to source and manage deals for the fund, which has already received significant interest from investors and, at first close, raised over £50 million.

The reaction that the fund has had highlights the need in the market for investments in the range of £1-5 million to be provided to small and medium sized businesses looking to develop their offering and expand their territory or product and service lines, Mark comments.

The corporate finance arena has undergone significant change over the past few months as the Chancellors March budget imposed new legislation for venture capital trusts restricting them to maximum investments of £2 million from any new funds raised.

Although this is probably good news for companies looking for investments of below £2 million it means that there will be far fewer investors addressing the space between £2 million and £5 million, where mid-market funds usually begin to take an interest.

Key Capital Partners first close raises in excess of £50m

Key Capital Partners (KCP) has today achieved a first close of its first private equity fund having raised in excess of £50 million.

The Fund, aimed at providing investments of between £1million and £5million to fill the ‘equity gap’, was launched in December and has received significant interest.

Investment to date has come from a number of blue chip investors including local authority pension funds, Fund of Funds, family offices and high net worth individuals, including SVG Capital, West Yorkshire Pension Fund, East Riding Pension Fund, West Midlands Pension Fund and Cayzer Trust

Commenting on the close, Mike Fell, founding partner, said: “The speed with which we have managed to raise this amount confirms the unique status of our offering and the benefits of our fund structure which sees more value returned to our investors.

“Investors, like us, have identified that funding at the £1m to £5m level has been increasingly neglected. We are open for business and keen to invest in management teams looking to grow their businesses.”

Press contact:    Claire Tennant @ MC2 (0161 236 1352)

Key Capital Partners Launches New Website

Independent private equity fund management company, Key Capital Partners has launched its website, aimed at assisting growth businesses with locating finance.

Key Capital Partners has been established by partners Mike Fell, previously managing director at Granville Baird Capital Partners, Owen Trotter formerly a partner at Royal Bank of Canada and Peter Armitage, ex managing director of Yorkshire Funds for YFM Group.

With an average of seventeen years experience in the private equity industry, this probably makes it the most experienced deal team to come to the sector.

Mike Fell comments on the launch of the new website: “This new site provides useful information to members of the public about the nature of our investments, as well as help to communicate the company’s key messages to a wider audience.”

Press Contact: Caroline Chell @ MC2 (0161 236 1352)caroline@mcmc.co.uk