The latest deals in Welsh business from acquisitions to fundraising

Here we feature the latest business deals in Wales from acquisitions to fundraising.

Idwal

Marine technology firm, Idwal is focused on rapid expansion and reaching £6m revenues, on the back of a £800,000 investment from Barclays.

Based in the maritime district of Cardiff Bay, and whose major shareholder is Graig Shipping, Idwal specialises accurate, consistent and objective inspection reports as well as a continuous commitment to raising the standards of ship inspections worldwide.

Every vessel inspected by Idwal is given a unique Idwal grade which analyses over 500 different data points gathered during the inspection which are then passed through our advanced algorithms to generate the grade results.

The algorithms feed the data into 21 sub-grades, culminating in a single final Grade, which quickly identifies and easily highlights areas that are exceeding expectation, or require improvement.

Its chief executive, Nick Owens, said: “We are very much a forward and progressive looking company and believe continued investment will be vital to the future success of our company. Utilising the latest technology combined with a skilled team of passionate shipping professionals, engineers, surveyors, and developers, we are revolutionising ship inspections around the world.

"We inspect everything from oil tankers to private yachts and operate in 85% of the world’s ports.”

Greer Hooper, Barclays corporate relationship director, said, “Idwal is a great example of a business being prepared to invest in people and technology, spotting threats and opportunities before it is too late.

"By really understanding the business and issues they have faced, Barclays has been able to support Idwal financially and professionally as the business continues to grow. This is a business based in Cardiff, but making waves across the globe.”

Mr Owens added “We have grown rapidly over the last five years and have created 15 highly skilled and well paid jobs over the last twelve months, as we commit to attracting the best talent to our business in Cardiff Bay.

"Our unique digital inspection framework and online platform allows our clients to view and understand the condition and risk of their maritime investments better than ever before, with greater visualisation and clarity of critical data, allowing customers to make smarter decisions.

"Supported by our offices in the ��Ƶ, China, and Greece and over 250 surveyors worldwide, our inspection reports and the Idwal Grade has become the ‘gold standard’ financial institutions, ship owners, and other stakeholders believe in and trust.”

Pinnacle Document Solutions

Cardiff-based print and document solutions provider Pinnacle has been acquired by market leader Ethos Group.

The acquisition, the value of which hasn’t been disclosed, expands the geographical reach of Ethos Group’s print portfolio.

Pinnacle Document Solutions operates in the ��Ƶ and mainland Europe with over 30 years’ experience. It supports over 3,500 managed devices.

With a combined workforce of over 200 employees, the deal will see Ethos’ turnover exceeding £42m by the end of the next financial year whilst looking to maintain Ebitda at 18% of revenues,

Barry Matthews, chief executive of Ethos, and Clive Hamilton, managing director of Pinnacle, will continue to work together to support the group’s ambitious growth plans.

Mr Hamilton joined Pinnacle in 1993 as a sales executive, before leading the management buy-out of the company in 2015 and undertaking the subsequent acquisitions of Fast Technology and Copier Mate.

Its acquisition by Ethos provides a successful exit for the Development Bank of Wales, who provided debt and equity funding to support the management buy-out led by Mr Hamilton.

It is understood that the deal provides the Development Bank of Wales with a two times return on its investment.

Mr Matthews said: “The acquisition of Pinnacle, together with Clive and his staff represents a strategic growth opportunity providing a solid platform in South Wales and the South West of England to build upon.

“Having known Clive for a while I was already aware of how well regarded he is within the industry and am excited to have the opportunity to now work alongside him. His work ethic is unparalleled and his outlook for the continued success in this industry is like my own.

“On a personal note, this acquisition was one of the last things I had the pleasure of working on with the chairman of Ethos, Paul Norris, before he passed away unexpectedly last year and for me, the senior leadership team and staff, this acquisition represents a continuation of his legacy.”

Mr Hamilton said: “We started this journey in March 2015 with the MBO, where myself and the board planned the M&A growth as well as the organic growth of Pinnacle within this 5 year period.

“The next step on this journey is now to look at how we can merge our skills, staff experience and customer loyalty to make a bigger more sustainable Business with far greater solutions and services that our clients will benefit from.

After meeting Paul and Barry I knew that Ethos were the Group that will add this value, drive and support to allow us all to build a more consolidated business that is in keeping with the fast paced technology market place that we are working in.

"On a personal note I am very excited at the opportunity in working with Barry and his senior leadership team to continue the Pinnacle story and journey going for the next 5 to 7 years.”

Gambit Corporate Finance acted as lead financial advisor to the shareholders of Pinnacle and were responsible for identifying, negotiating and structuring the transaction. The Gambit team was led by Geraint Rowe (partner) Tim Brotherton (director) and Nick Gallagher (analyst).

Mr Rowe said: “We have had the privilege of working closely with Clive and Pinnacle for several years, having previously advised on the MBO in 2015 and subsequent acquisitions, witnessing first- hand how the company has grown to become a leading provider of managed print services and document solutions in South Wales and the South West.

“The acquisition by Ethos Group will enable both Pinnacle and Ethos to realise the next stage of their growth plans as part of a larger group, with a greater service offering and customer footprint.”

Gunnercooke provided legal advice to the Ethos Group and Hugh James (Gerallt Jones and Gemma Davies) provided legal advice to the shareholders of Pinnacle.

Sam Macalister-Smith led the transaction for the Development Bank of Wales

Veezu

The ��Ƶ's biggest private hire vehicle operator, Veezu, has completed its fifth acquisition as its accelerates its expansion plans.

The Newport-based firm, which last month announced a refinancing deal with Santander and Tosca Debt Capital running into tens of millions of pounds, has bought the ��Ƶ's sixth largest private hire car business in Go Carz.

The value of the deal has not been disclosed.

Operating throughout Shropshire and the West Midlands, including Shrewsbury, Telford, Wolverhampton, Dudley and Walsall and with more than 1,200 driver partners, Go Carz completed five million journeys last year.

It will boost the 13 million bookings completed by Veezu in 2019.

Chief executive Nathan Bowles said:“I’m delighted to welcome everyone at Go Carz to Veezu. Go Carz is an extremely well managed and established business that complements our existing private hire brands. I look forward to working with Carl Wilday, Graham Hoof and Robin Gibson who will be helping us realise the Go Carz regional growth plan.”

Carl Wilday, managing director of Go Carz, said: “It’s very much business as usual. The Go Carz brand will be staying, and we will continue to be based out of our existing Head Office in Shrewsbury and our regional offices around Shropshire and the West Midlands.

" Being part of Veezu brings us access to additional resource and expertise, as well as the next generation of technology innovation that will benefit both the driver partners and passengers of Go Carz.”

The acquisition marks Veezu’s third acquisition in 2020, following hot in the footsteps of Cwmbran Cars and Chauffeur Cars in January this year.

This latest deal sees Veezu now operating with more than 6,000 driver partners, making it significantly the biggest private hire business in the ��Ƶ.

Veezu has four other major service hubs throughout the ��Ƶ, each operating under established local brands – A2B Radio Cars in the West Midlands, Amber Cars in Leeds, Dragon Taxis in South Wales and V Cars in the South West.

Mr Bowles said:“We have started this year very strongly and have clearly accelerated our growth. Our vision to grow Veezu both organically and through acquisitions is on track. We are excited at the prospect of delivering the next stages of our Veezu growth strategy and vision."

Veezu was founded in 2013. Its 13 million private hire journeys last year equated to an overall transaction value of £120m through 4,650 driver partners.

The company has also made sustainability part of their business plan, investing more than £1.5m in low emission cars.

Cedars Dental Practice

Cedars Dental Practice in Llanishen, Cardiff has been acquired for an undisclosed sum by Dr Nitin Duggal and Dr Christopher Truman.

Both are old friends who met at Cardiff Dental School where they graduated in 2009. Dr Duggal owns The Dental Surgery in Grangetown Cardiff. Dr Truman is an experienced associate and holds a diploma in restorative dentistry Royal College of Surgeons of England and has practised extensively in and around Cardiff.

Cedars Dental Practice was established by clinical director, Dr Iain Manson in 1994. Dr Mason qualified as a dentist in 1982 when he graduated from the University of Witwatersrand in South Africa. He obtained a Masters in Periodontology at the Cardiff Dental school in 1987.

Dr Manson, said: “I am delighted that after 30 years that we are going to be able to move onto the next chapter for Cedars with the support and involvement of Nitin and Christopher.

" We look forward to continuing to provide our patients with outstanding clinical care. It has been a seamless process and I am particularly grateful to Nitin and Christopher and in particular, our advisors Hywel Loveluck and Owen Sennitt of ProPractices who have managed the transaction process on our behalf.”

Dr Duggal said :“I’d certainly like to echo Iain’s comments and look forward to working with him, our new team and indeed our patients as we effect a transition with Iain over the next year or so. Cedars is an exciting acquisition for us and presents an excellent private dental opportunity for the prosperous and growing area of Cardiff north."

The transaction was managed and effected on behalf of the vendor by ProPractices Advisory a specialist consultancy operating in the Welsh dental sector. The legal process was managed and advised by Chris Davies and Rhiannydd Llewellyn of JCP Solicitors, Cardiff.

Hywel Loveluck of ProPractices Advisory said: “Both Owen Sennitt and myself are delighted that our researched-based approach was able to identify and match Nitin and Christopher as potential purchasers for Cedars. Now both parties have now successfully completed the deal, I am sure the patients will be equally delighted with the care they will receive from them and indeed Iain, as part of a planned transition process.”

Huws Gray

Rapidly expanding builders’ merchant Huws Gray has acquired another business.

The Anglesey-based company’s latest acquisition is Mid Wales based AC Roof Trusses Ltd.

Founded in 1990 from a single branch in Anglesey, the Huws Gray group have rapidly expanded over the past 30 years, through both organic growth and acquisitions.

It now employs close to 2,000 workers at sites across the ��Ƶ.

The firm’s latest purchase, AC Roof Trusses, was established in 1982, and are specialists in the design, production and supply of structural timber components.

The company employs 30 people at its 1.4-acre site in Welshpool, which includes two factories amounting to over 17,000 ft2 of production facilities.

Osian Jones, development manager for the Huws Gray Group , said: “We are very pleased to be able to announce the acquisition of AC Roof Trusses.

“The company is very well known and respected for its expertise and service.

“It’s going to be a very exciting period for everyone involved. We are very much looking forward to building on the success of both of the roof truss manufacturing locations and utilising the expanded Huws Gray Group branch network to distribute products to our customer base across the country.”

Tom Jones, managing director for AC Roof Trusses, said: “On behalf of the directors and all employees we are very proud to be joining the Huws Gray Group. Recent years has shown exceptional growth where we have worked closely with Huws Gray and grown to be a reliable and trusted supplier of engineered timber structures.

“With the current management structure being retained we are hugely excited for the future to working with the rest of the Huws Gray Group, opening doors to new opportunities and building on the success the company has had in recent years.”

The timing of the acquisition comes just as Huws Gray Group nears the completion of the refurbishment of most of the Ridgeons branches (now trading as Huws Gray Ridgeons) across East Anglia.

It bought Ridgeons, the long-established timber and builders’ merchant business, back in 2018.