Here we feature the latest equity investment and acquisition news in Welsh business
A university spin-out business that has developed a range of tech driven footcare products has secured a £1.2m grant and equity funding boost.
The equity investment into Cardiff-based Kaydair has been led by a group of angel investors, along with the Development Bank of Wales and the University of Wales Trinity St David. The Welsh Government and Innovate Ƶ is also backing the spinout of Cardiff Metropolitan University. Kaydair, set up by podiatrists David Barton and Heather Smart, is improving foot care by using emerging technology to help relieve pressure lesions and similar sores.
Its new DiaSole and ZeroSole products are respectively designed to help those suffering from diabetic foot ulcers and pressure-induced corns or calluses. Both products make use of easily customisable hexagonal mesh frames, allowing wearers to change the size and shape of the soles in line with treatment needs. Kaydiar plans to follow up their success with its new technology, PROMorph - a composite material which aims to disrupt the podiatry and orthotics industry - by helping patients using casts, braces and other medically-prescribed orthotics when recovering from injury.
The Development Bank of Wales has invested £200,000. Women Angels of Wales, £210,000 and the University of Wales Trinity St David £100,000. The business has also secured funding of £450,000 from the Innovate Ƶ smart grant award and £200,000 from the Welsh Government.
Carol Hall, investment manager for Angels Invest Wales, said: “The products that Kaydiar are bringing to market will be hugely beneficial to people suffering with foot pressure sores, and they’re a fantastic example of a Welsh spin-out medtech company using new technologies to provide a solution to something which affects thousands of people.”
Sharon Pipe, who led on the deal at Women Angels of Wales, said: “We’re working hard to encourage more women to get involved with angel investing. Our support for Kaydiar is a great example of bringing together grant, angel and institutional funding to provide the resources to support the development of an innovative, early-stage company in Wales. Our syndicate is delighted to support Heather Smart and David Barton, two young podiatrists who are applying new technologies to improve patient outcomes in the footcare sector. We all look forward to working with Kaydiar to build a world class company.”
Mr Barton of Kaydiar said: “This is a pivotal time for Kaydiar, as we launch ZeroSole online and through large retailers such as Boots, whilst continuing to innovate new disruptive offloading technology for the podiatry and orthotic markets.”
Western Marinas
Ownership of Cardiff Marina and the management of Aberystwyth Marina have been acquired out of administration.
International law firm Womble Bond Dickinson (WBD) has advised on the transaction that has seen new venture Western Marina taking over assets of Cardiff-based Marine Property Group that was put into administration last year.
Western Marinas has acquired Cardiff Marina, the operating lease for Watchet Marina in Somerset, while also taking on the management contract for Aberystwyth Marina. The value of the deal has not been disclosed.
Western Marinas, which has no directorship links to Marine Property Group, secured backing from Trevally Capital and Harwood Private Capital. Funding was arranged by Trevally Capital Advisers.
The group will work to realise the potential of Cardiff, Aberystwyth and Watchet marinas, as well as Cardiff Marine Village and the associated dredging division.
A WBD team led by partner Will Fraser from WBD’s finance and investment team advised on the deal, with significant support from partners Charlie Reid, Amy Gallimore, Andy Stirk, and Carl Powlson from the firm’s banking, restructuring, and corporate teams.
Mr Fraser said: “It is fantastic to have been able to support Trevally and their partners again on another transaction, especially given this deal’s importance in helping shore up the long-term sustainability of a number of marinas in Wales and England.
“This was a deal which required significant expertise across a wide range of practice areas as well as a strong consideration of the current market and conditions the business faced, and we are thrilled to have been able to provide assistance on this and help them turn around the organisation with a view to develop it further.”
The board of Trevally said: “Western Marinas has a clear mission to put these marinas back to where they belong as some of the leading facilities in Wales and the south west, and we would like to thank the WBD team for their relentless effort, brilliant counsel and superb teamwork to help get this investment finalised and over the line, especially given the wide-reaching nature of the deal.”
Forden Concrete Products
Powys-based precast concrete company has been acquired in a management buyout as it looks set for expansion. The deal for Welshpool-based Forden Concrete Products was part financed with a £45,000 loan from the Development Bank of Wales.
Director Shane Clee has purchased the business from founder Geoffrey Jarman who first established the Welshpool-based business in 1978. Mr Clee joined Forden in 2001.
Using quality materials and traditional techniques, Forden manufactures a range of precast concrete products for the dairy and agriculture industries including water troughs, feed troughs, slurry systems, portable cow stalls, gate posts and cattle foot baths.
The company has 24 agents throughout the Ƶ and is now hoping to diversify the product range with the introduction of new lines including concrete wall panels for domestic and commercial garden use.
Mr Clee said: “After 24 years with Forden, this is a great opportunity to take on the business myself and work with our close-knit team to continue doing what we love and know best. We’ve worked closely with Geoff to build the strong reputation that we have and now look forward to getting stuck-in with our plans for future growth but we wouldn’t be doing it without the help of the development Bank.
James Ryan, investment executive with the Development Bank of Wales, said: “We are here to help businesses become established, grow and thrive. A core part of our remit is to support management teams who want to run their own business so we’re pleased to have been able to help Shane to become the new owner of Forden, particularly as it is a well-established business that employs local people. We wish the team every success.”
Totally Welsh
West Wales-based dairy business Totally Welsh is under new ownership. The Haverfordwest-based dairy venture has been acquired by Surrey-based dairy supplier group Freshways. The value of the deal has not been disclosed.
Totally Welsh, established in 1990, sources milk from farmers within a 40-mile radius of its bottling plant. Latest audited accounts show that in the year to the end of April 2023, the business grew revenues from £17.2m to £25.1m with pre-tax profit up from £223,000 to £530,000.
It employs around 110. Freshways recently acquired of Milk & More from Müller. Totally Welsh Dairy’s recent investment in a new glass bottling line was to meet growing demand for sustainable packaging. The facility will be utilised to serve the doorstep customers supplied by Milk & More.
Managing director of Freshways, Bali Nijjar, said: “We are thrilled to welcome Totally Welsh Dairy into the Freshways family.
“Their commitment to quality and sustainability aligns perfectly with our values. This acquisition will allow us to better serve our customers with an expanded range of products while supporting local Welsh farmers.
“Additionally, the recent integration of Milk & More has strengthened our delivery capabilities, enabling us to meet the growing demand for convenient, sustainable dairy products.”
Mark Hunter, the former owner of Totally Welsh, who is remaining with the business as managing director, said“The sale to Freshways will ensure the future growth and development of Totally Welsh, creating new opportunities for the company and its dedicated work force.
“Under the guidance of Freshways, the Totally Welsh brand will grow to become the nationally recognised brand it deserves to be.”
Seren Group
Former chief executive and co-founder of Wales’ only FTSE 100 business Admiral, Henry Engelhardt and his wife Diane, have taken a minority ownership stake in restaurant and hotel group Seren.
Seren is run by husband and wife team Neil and Zoe Kedward. Their first venue was the Grove of Narberth in Pembrokeshire. The group’s other hotel is the Penmaenuchaf near Dolgellau. The family-run business also operates three restaurants in the Fernery (located within the Grove of Narberth), the Michelin starred Beach House at Oxwich By and the Lan y Mor in Saundersfoot.
The investment will enable Seren to accelerate the full refurbishment of the Penmaenuchaf Hotel, while also allowing it to pursuing opportunities in new locations.
The Engelhardts have taken an equity stake via their investment firm Wrightwood Investments. The value of the investment has not been disclosed.
Seren chief executive Mr Kedward said: “We are thrilled to welcome Henry, Diane and their team from Wrightwood Investments as a strategic partner. Their investment and expertise will allow us to grow whilst staying true to our core values of exceptional service and a commitment to showcasing the best of Welsh hospitality.
“The collaboration provides us with the resources and strategic guidance to continue innovating and expanding our brand.
“We are confident that together, we can continue to grow and enhance the Seren experience while maintaining our distinct sense of place and wider purpose to impact positively on our community in each location.
Mr Engelhardt said:“Seren’s brilliant portfolio of hotels and restaurants, highlighting the best of Welsh culture and hospitality, makes this an exciting partnership.
“The collection is all about promoting the best Wales has to offer to the world and we look forward to helping them grow and prosper, bringing great Welsh experiences to travellers from around the globe.”
The Engelhardts other investments in Welsh firms include those into Hydro Industries and Drop Bear Beer. The Kedwards began their business when they acquired what then the derelict Grove country house in 2008.
Monty’s Brewery
Serial entrepreneur and chairman of football club The New Saints FC (TNS), Mike Harris, has taken a minority ownership stake in Powys-based Monty’s Brewery. On the back of his investment the Montgomery-based brewer, which produces a range of ales, stouts, and gluten-free beers, aims to increase its commercial reach Ƶ-wide.
The acquisition is the first brewing acquisition made by Mr Harris’s investment vehicle Ubuntu Holdings, with further sector deals also planned. It follows his recent acquisition of Welshpool-based distillery, Henstone Distillery. The value of Mr Harris’s investment into Monty’s Brewery, for a 51% controlling interest, has not been disclosed.
Mr Harris said: “This is a really exciting day for both myself and the team at Ubuntu Holdings. Monty’s Brewery has an excellent range of products on offer, frequently enjoyed by those across Powys and beyond.“As one of the region’s most popular breweries, I’m excited to help Monty’s Brewery increase production and distribution on a national scale.”
Russ Honeyman, commercial director of Monty’s Brewery, said:“This is a fantastic opportunity for us here at Monty’s Brewery. Mike has always had strong visions for the local area and community, as highlighted through his incredible work with The New Saints FC.
“We are looking forward to sharing our multi-award winning beers with a wider audience and creating new products to add to our award winning range.”
