Seneca’s £200,000 injection into printing firm secures 37 jobs

NEW turnaround fund Seneca Investments has made its first cash injection and has drawn up plans to boost its target with two bolt-on acquisitions.

Leeds-based Seneca is pumping £200,000 into Sheffield-based specialist printing business Whitesprint, securing 37 jobs.

Seneca was set up last year to provide a lifeline for small businesses feeling the squeeze.

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John White, managing director of Whitesprint, said: “The injection will allow us to continue with our growth and has secured the future of the business.

“It will allow us to work on bolting on other businesses which may be facing the same pressures in the industry.

“We particularly admired the speed in which Seneca put the deal together.”

Seneca director Melanie Hird said the group was looking at two other business to bolt on to Whitesprint. Both are based in Yorkshire.

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One deal is likely to take place next month while the other will be in the next couple of months.

“The print sector is an area for consolidation,” said Ms Hird.

Patrick Bywater, fellow investment director, added: “Printing is a competitive sector facing serious challenges. Our intention is to ensure Whitesprint benefits from other opportunities we are identifying to complement this business.

“We believe that this industry is moving towards significant consolidation and we are ready to take advantage of this situation.”

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Whitesprint prints a number of products from brochures and business cards to point of sale material.

“Whitesprint works with a lot of councils,” said Ms Hird.

“It has some very clever software that takes pressure away from councils. You can fill in a simple link and go straight to the printer.”

Whitesprint’s litho & digital print division focuses on brochures, booklets, business stationery, presentation folders, leaflets, flyers, menus, manuals, forms, duplicate pads and invitations.

Its large format division specialises in exhibition stands, pop-up banners, posters, canvas prints, exterior banners and point-of-sale graphics

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Seneca brought the funding together with Aldermore Invoice Finance.

Ms Hird said Whitesprint is the first of a number of deals.

“We will look at all sectors of the distressed market,” she said.

“We fit the niche where the banks aren’t lending. We can react and move quickly.”

Seneca has a number of investments in the pipeline, one of which is based in Yorkshire and another in the North West.

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The fund is looking to invest between £200,000 and £500,000 for three to five years. The maximum investment is £2m per transaction.

Its exit route will be via a trade sale or a management buy out.

“With market conditions the way they are, and the continued restricted availability of credit, we are committed to providing funding and creative solutions working with funders like Aldermore,” said Ms Hird.

Seneca Investments, part of the Seneca Partners Group, provides funding and solutions for companies in distress, turnaround or other special situations.

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“There is increasing demand from SME’s experiencing some form of financial distress for the financial and business support that myself and Patrick have been providing for many years,” said Ms Hird.

Mr Bywater said: “We have been supporting SMEs in the Yorkshire region with funds when the banks can’t or won’t support for the past four years.

“We are benefiting from having more financial resources and this will enable us to look at even more opportunities than previously”

Over the last four years, Ms Hird and Mr Bywater have carried out 13 transactions between them, of which eight have been successful exits and the other five continue to remain on track for exit.

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Ian Currie, who heads Seneca Partners, said: “All of the high net worth investors in Seneca have recognised the opportunity to invest to create significant wealth.

“We are delighted with the speed and efficiency of this investment and look forward to the many more opportunities that will be presented by the Seneca Investment team”

Neil Large, partner at the HLW Keeble Hawson Corporate Department in Leeds, advised Seneca. Jonathan Simms, senior associate in the Clarion Corporate Department advised Aldermore. Dick Jennings of RDY Jennings & Co advised management on the transaction.

Aid for companies facing distress

Seneca, part of the Seneca Partners Group, was set up to provide funding for companies in distress or those that need help with turnaround strategies.

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The company is led by Melanie Hird and Patrick Bywater and operates from bases in Leeds and Wakefield.

Ms Hird spent several years in the corporate restructuring market before founding Frontline Investment Opportunities in 2008 with her business partner, Mr Bywater.

Seneca will provide investment funding up to £2m per transaction.

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