Business as usual for private equity across the North

Here in Yorkshire, Canadian private equity house Ardenton Capital set its sights on mid-market businesses in the region and Leeds-based private equity house Endless has been extremely busy since the Brexit vote.

Endless said its recent deals underline the enduring appeal of British businesses in spite of the economic and political uncertainty surrounding the UK’s future relationship with Europe.

Ardenton Capital, which has opened a UK office in Manchester, aims to invest in businesses with earnings of £2m to £10m and says it is already in discussion with firms in Yorkshire. The business will be spearheaded by two M&A professionals: Michael Bradbury who joins from BDO UK and Iain Marlow who was previously at Deloitte UK.

Mr Marlow, originally from Doncaster and now lives with his family in Huddersfield, said: “I know first hand how many great businesses and business owners there are, right here in Yorkshire, that could benefit from our investment.

“Yorkshire is the perfect place for Ardenton to access UK businesses in the regions with a track record of financial robustness and clear organic growth opportunities that will stand the test of time.

“We’re already having meetings with business owners in Yorkshire and our deal pipeline looks healthy.”

Meanwhile, Endless has sold four companies since June, attracting strong interest from national and international buyers looking to acquire strategic assets in the UK market.

James Woolley, partner, said: “We are getting good value for businesses post-Brexit vote. Investors are still seeking good assets in the UK and are willing to pay a good price for them.

“Endless is holding strategic assets wanted by national and international organisations. Trade buyers are still open for business and want to get deals done in the UK.”

He added: “After the EU referendum, activity was put on hold for a short period until people realised that the status quo would remain and they should continue to act strategically and look for opportunities in the UK and Europe.”

While this situation may change when the Government releases more details about its Brexit plans, Endless said that as a private equity firm, it cannot stand still.

“Europe will continue to trade with Britain and respective European governments will be under pressure to do trade deals with Britain,” said Mr Woolley.

“At Endless, we are confident about the future and will continue to look for the right opportunities.”

Its most recent disposal was at the end of last month when Enact, the SME-focused Endless fund, sold the West Cornwall Pasty Co. to UK-based food group Samworth Brothers for an undisclosed sum.

The fund, backed by investors including former England footballer Danny Mills, bought West Cornwall Pasty Co from administrators in 2014, saving 230 jobs.

The exit delivered a five fold-plus return to investors after Endless and the management team quadrupled profitability.

Endless also sold Chaucer Foods, a specialist supplier to some of the world’s biggest food groups, to Japanese-based manufacturer Nagatanien in a £108m deal earlier in December.

It completed another sale to a Japanese buyer in August with the disposal of the business processing service firm Liberata Group to Outsourcing Inc for an equity value of £43m.

“The issue of Brexit never arose during deal discussions,” said Mr Woolley.

While London panics over its status once Article 50 is triggered, the North is quietly getting on with business as usual.