Gresham targets region’s firms

Gresham is targeting the region as it believes a number of Yorkshire companies have survived the downturn and are now ready for growth.

Mark Blower, the Gresham partner responsible for deals in Yorkshire, said: “In 2007 and 2008 we decided it was not the time to be investing. Now it is a fantastic time. There is real resilience in the Yorkshire community. A lot of businesses have weathered the storm and are now looking to grow.

“If they want capital for investment, we have capital.”

Gresham Private Equity invested in two deals in Yorkshire last year, but is now looking to beef up its operations.

In April it backed the £32.8m management buy out of Team Telecom Group from Leeds-based Spice Group. In the same month it also backed the £12.8m management buyout of Lanes Assistance Services from Leeds-based Lanes Group.

Gresham is keen to invest in Yorkshire businesses valued between £5m and £100m. “As an investor, what we look for is companies with talented management teams, solid business fundamentals and a unique offering or market leading position,” said Mr Blower.

“There are hundreds of entrepreneurial companies in Yorkshire that fit this profile and we are keen to hear from them. The potential in the region is tremendous.”

Gresham has invested in a wide range of sectors providing both capital and advice to help companies move on to the next stage in their development.

Its portfolio includes well-known high street names such as the West Cornwall Pasty Company, but the majority are firms that have carved out a niche such as Leeds-based JT Group, the UK’s largest manufacturer of shower trays.

Paul Crossley, JT Group’s managing director, said: “Partnering with Gresham has helped us to grow and improve our business in ways that simply wouldn’t have been possible otherwise.

“Private equity sometimes has a negative image but our experience has been nothing but positive. Our strategy is to continue to grow our market share and, with Gresham’s support, we plan to introduce further innovative products.”

Mr Blower said: “Once we invest in a business, we work in partnership with the management team to fundamentally improve it. We can help businesses that want to expand overseas or make acquisitions or for some, it’s just a case of helping them professionalise.”

Gresham is keen to talk to Yorkshire businesses from a wide range of sectors including healthcare, renewable energy, industrial products and financial services.

“There are also a lot of really innovative companies which originated from the region’s universities,” said Mr Blower.

“We tend to look at these businesses once they are more established rather than as start-ups, but there are a good number that are now spreading their wings and are really exciting prospects.” Talking about the outlook for deals in 2011, Mr Blower said: “Deal activity in Yorkshire is definitely picking up, albeit gradually. Activity last year was more than double the year before but, we are still a long way off the heady heights of 2007.

“I don’t believe deal volumes will ever return to 2007 levels. Not just in Yorkshire but across the whole country.

“A lot of private equity firms used to rely on cheap debt to fund their deals and that model no longer works. As a result, private equity has gone back to basics and that’s no bad thing.”