Here we feature the latest merger and acquisition and fundraising news from Welsh business.
Cardiff-based fintech Zero has launched a crowdfunding campaign ahead of a planned series A round planned later this year to drive its scale-up. It comes as its B Corp certified sustainable money app has been widely launched under e-Money regulations to provide a debit card, personal current account, and app for climate-conscious consumers.
This follows an early adopter phase which lasted two months, in which more than 50,00 people registered for early access.
The crowdfunding campaign, via Crowdcube, has an initial target of £750,000 , but with hopes that it will be significantly oversubscribed - allowing the start-up to achieve more ahead of its series A round.
The business was pre-seeded by the founders and secured a seed fund of just over £1m in September 2023
Zero which currently employs 18, said the crowdfunding proceeds will be used to recruit more staff and invest in marketing and third party services to power the platform.
Co-founder is serial entrepreneur Richard Theo, whose track record includes establishing successful Welsh fintechs such as Wealthify, and ActiveQuote.
Zero has designed its product to appeal to the Ƶ’s 11 million climate conscious under-35s, enabling them to make their money work for good.
It has partnership with a range of suppliers to bring the product to market, including Mastercard, Transact Payments, Integrated Finance, Marqueta, Onfido, Flagright and Kani, In addition to a 95% recycled plastic debit MasterCard that can be used abroad free additional ATM or point of sale charges.
Zero’s app includes the GreenScore, an easy way for people to understand the environmental impact of their spending, and if they choose to link in other accounts and cards through open banking, the impact of their spending on those cards and accounts too.
Mr Theo said: “For the first time in a generation, a company with the potential to stand alongside Admiral as a Welsh FTSE-listed firm has emerged. If we go on to achieve this goal, it would bring tremendous economic benefits to Wales.”
Lisa Stanley, chief sustainability officer, added: ‘Our vision is a world where money is a force for the good of the planet. Where money will never be used for anything that’s harming the planet, such as fossil fuel production or deforestation.
‘We’re aiming to fill a much-needed gap between digital banking features and effortless sustainability that simply isn’t available currently.”
Zero is also pioneering a new ownership model which it calls its community share option scheme, through which the company will share 20% of the value of the business with its customers. Early Zero customers are being offered 400 community share options to help zero build a community of what it describes as “like-minded climate-conscious people and grow the power of collective action on climate change.
Zero has a long-term aim of become a bank. However, it would need to raise millions in capital to achieve regulatory approval and have the required reserves.
Hugh James
Legal firm Hugh James has reported its best ever year for corporate deals after acting on transactions with a value of nearly £650m in 2024. Its commercial team advised on 60 merger and acquisition transactions with their combined value more than double that in 2023.
The firm, which has its headquarters in Cardiff as well as offices in London, Manchester, Southampton and Plymouth, said that its deal pipeline for 2025 was also encouraging.
Gerallt Jones, partner and head of Hugh James’ corporate/ commercial team said: “2024 was another record-breaking year for our team. The lead up to the Budget in October was the busiest period the team has ever experienced, as a result of a huge rush for deals to complete before anticipated tax changes. More generally though, there was a constant stream throughout the year of M&A and investment deals both within and outside Wales.”
Significant deals it advised on in 2024 included:
- Acting Port of Milford Haven on its purchase of the luxury St Brides Spa Hotel.
- Advising multinational manufacturer Rockwool on the acquisition of Wetherby Building Systems.
- Acting for Cardiff Rugby on its takeover by Helford Capital.
- Advising Club 3000 Bingo (one of the Ƶ’s largest bingo operators) on the acquisition of Buzz Bingo, Washington.
- Advising Double Diamond (Rainbow Casino) on the disposal of its Aberdeen Casino; and Acting for 888 Africa on its acquisition of BetLion, a regulated and licensed gaming operator in Kenya and Zambia.
Mr Jones said: “We are also really pleased to have supported two new entrants into the Welsh investment market, namely advising the £50m Cardiff Capital Region fund, IIC, on its multimillion-pound investment in the online accountancy company, Mazuma, and advising venture capital firm, Waterspring Ventures, on a number of investments.”
Reflecting on another successful year and the outlook for deals, corporate, M&A and commercial partner, Aled Walters, said:“After the hive of activity in the run up to the Budget, the market flattened at the tail end of 2024 as companies and investors considered their responses to the measures introduced by the Chancellor. Looking ahead, more than in recent years, deal activity in 2025 is likely to be dependent on the broader economic and political landscape, both within the Ƶ and more generally.
“There are a number of potential headwinds including the impact of a new president in the US and the performance of the Ƶ economy, which could have a significant impact on the market. However, we remain positive for the year ahead. The outlook for 2025 is already promising with increased levels of interest already evident.”
Zip World
Adventure giant Zip World has been sold in a £100m plus deal that paves the way for further expansion. It has become majority-owned by Oxfordshire-based equity investor Dolphin Capital.
The deal provides a profitable exit for LDC, which took a significant minority stake following a multi-million-pound equity investment in the business back in 2018. Since then it has increased turnover by 95% and grown headcount by 200%.
Llanrwst-based Zip World was founded in 2013 by former Royal Marine Commando Sean Taylor, who retains a minority stake following the acquisition.
It now has eight sites across Wales and England, with adventures including the world’s fastest zip line, Velocity, and a variety of other zips, climbs, drops, and coasters across its locations.
Andrew Hudson, chief executive of Zip World, said: “The leisure and hospitality sector has had its challenges over the past year, so I’m incredibly proud of everything we’ve achieved and that we’re able to continue growing and building on this.
“We’re incredibly excited to welcome Dolphin Capital as our new partner not least because they share the same enthusiasm as we do. Their investment not only validates our vision and strategy, but also provides us with the resources and support to really kickstart our latest growth plans. This is just the beginning of what we hope will be a big year.
“Investment is key for us, not only in our new sites but also in adding value to our existing locations. We’re thrilled to be opening in London and expanding our offering to communities across the Ƶ, but North Wales remains at the heart of our company – it’s where it all started and it’s why we are continuing to reinvest in more adventures for the area.”
The transaction was led by Dewi Hughes, Rob Schofield and Vera Kuehne at LDC.
Mr Hughes, partner and head of south west and Wales at LDC, said: “Zip World is a progressive, dynamic and ambitious business in the Ƶ adventure space. It has achieved strong growth during our partnership thanks to the vision, tenacity and strength of its first-class management team, who have navigated opportunities and market challenges with relish.
“We’ve had the privilege of supporting this important Welsh business on its journey from our Welsh office and wish the team and Dolphin Capital the very best for what will no doubt continue to be an exciting story.”
Dolphin Capital, set up in 2023 by Richard Cook and Kit Tuke, has a portfolio that includes the likes of Snowcentres, Techmet and Dynisma in its portfolio.
Mr Cook, partner of Dolphin Capital, said: “We are delighted to support Zip World in their continued growth, and our investment reflects our confidence in the team’s operational ability, their expansion plans and the positive impact they make to the adventure tourism sector in the Ƶ.
“We look forward to investing in the existing sites and opening more Zip Worlds in the coming years.”
LDC and Zip World were advised by KPMG (corporate finance), Blake Morgan (legal), Grant Thornton (tax) and Sedulo (tax), with ongoing support from HSBC Leveraged Finance Manchester.
Dolphin Capital was advised by Katz Advisers (corporate finance), Fladgate (legal) and BDO (financial & tax due diligence) and KPMG (tax).As well as its new London attraction, Zip World is aiming to open another new site this year in Elterwater, Cumbria. The company also has plans for a new ride at Penrhyn Quarry that it claims will be “the largest of its type in the world”.
Pelly
A North Wales start-up developing an AI platform to support football clubs and other sporting organisations to recruit the best player talent and make smarter operational decisions, has been boosted with a six-figure equity investment.
Pelly aims to transform sports operations by offering a platform for managing talent and streamlining decision-making. It combines artificial intelligence with an intuitive user interface to help sports organisations make data-driven decisions efficiently. It unifies a range of data, such as scouting reports, injury history, performance data, t support clubs in decision making. Eight football clubs are now testing the product ahead of an expected market launch in the spring.
Based at M-SParc in Anglesey, Pelly is the brainchild of co-founders Iwan Pritchard, Stephen Hickingbotham, and Tomos Owen. The trio are under the age of 25.
In their first investment round, they have raised £355,000 to support commercialisation plans. The round has been equally backed by a syndicate of ten investors from the M-SParc angel network, led by Robert Williams, the Development Bank of Wales, alongside private investment.
Through an M-SParc accelerator programme, the Pelly team have been mentored by communications consultant Barbara Want , M-SParc angel Shaun King , as well as receiving guidance from private investor Ian Brookes.
Co-founder Mr Pritchard said: “Pelly bridges the gap between data and action. We’ve built a platform that leverages AI to turn complex data into clear, actionable insights for clubs. Our focus is empowering teams to operate with agility, integrating the data they already have, and providing tools that help them win - both on and off the pitch.
“We’ve been working closely with international academic institutions to develop our prototype. Over 100 industry professionals have been consulted to date, and eight football clubs are now testing the product before going to market in the next few months.
"The support of our team, advisors, and investors is helping us to accelerate our growth. They’re encouraging us to work smarter whilst opening doors and providing the working capital that we need to fund our early-stage development. It’s a huge vote of confidence in us, our business model, and our potential as a young and driven team .”
M-SParc’s angel network was established to back start-up and early-stage businesses in North Wales. It is focused on mentorship and networks and to date has supported over 14 businesses in the region. However, the Pelly investment (£124,000), is its first major investment.
Angel investor Mr Williams said: “Our members have a wealth of finance and business experience, having started, scaled, and exited a wide range of businesses.
"We’ve come together as a group as we all want to see the North Wales economy prosper, and we share a commitment to helping the next generation of entrepreneurs like the team at Pelly to succeed. Indeed, this is a team of bright, young, and ambitious football professionals who know their market, and have already established Pelly as a credible presence within the industry. This funding round now gives them the platform to go to market.”
Angel Invest Wales operations manager Tom Preene added: “Growing Welsh businesses need access to funding, but the guidance and support of experienced business owners as angels is also hugely valuable. The business angel network in Wales is growing, enabling more start-ups, and young entrepreneurs like the team at Pelly to benefit from the backing of investors. It’s a win-win with our match funding then providing additional firepower to help drive growth.”
BCB International
One of Wales’ oldest businesses and leading survival and life support equipment manufacturer, BCB International, has been acquired in a multi-million-pound deal.
The business which started trading providing cough medicine to soldiers in the Crimean War in the 1850s, has been bought by Derby-based Wescom Group. The exact value of the deal has been disclosed.
BCB International has a range of around 500 core products, many of which are NATO approved. Its main customer is the Ƶ Ministry of Defence. Products include medical and survival kits and camouflage and concealment equipment. It also supplies FireDragon eco-fuel to soldiers for cooking.
Its latest audited accounts submitted to Companies House, show that in its 2023 financial year, it generated sales of £14.6m - of which nearly £3m were exports - and an operating profit of £2.7m. The business employs around 70.
Derby-based Wescom Group is a supplier of safety equipment in the defence, outdoor and marine sectors. It has specialist manufacturing facilities across multiple sites in Germany, Ƶ, Spain and Australia.
Its chief executive Ross Wilkinson said: “We can announce the successful completion of the acquisition of BCB International, a partnership that will further enhance Wescom Group’s core safety and survival product portfolio. We are excited to work with the management team on growing the business through the group’s extensive distribution network, whilst also having a strong focus on new product development programmes.”
BCB International’s managing director Andrew Howell said: “This announcement is an exciting opportunity and the BCB team are energised to be joining with Wescom Group.
"This partnership will help us to deliver our innovative MSC (multi-spectral camouflage technology and world beating FireDragon eco-fuel to a much wider international audience as well as our core products that are constantly evolving. We have known some of the Wescom team for many decades and it is invigorating to be working with them to help save lives and protect the protectors to a much larger scale.
Cardiff headquartered corporate advisory firm GS Verde acted for BCB International on its acquisition. Its chief executive Nigel Greenaway said: “We are delighted to see this transaction complete and wish all the teams at BCB International and Wescom Group, all the very best for their future partnership.
