Here we feature the latest equity investment news in Wales
Hugh James
Legal firm Hugh James is further expanding with the acquisition of Loosemores Solicitors. The deal, which will be finalised later this month following a TUPE consultation process with staff at Loosemores, is the latest from the Cardiff headquartered practice.
Last year it acquired Manchester-based Potter Rees Dolan, a niche practice focusing on catastrophic personal injury and clinical negligence. Hugh James, which also has offices in London, Plymouth and Southampton, last year outlined an acquisition focused five year growth strategy.
As part of the deal senior partner of Cardiff-based Loosemore, Mark Loosemore, will become an equity partner in Hugh James. The firm was originally set up by his father John in the 1960s. Staff at the firm, which number around 20, will relocate to Hugh James’ offices at the 2 Central Square office building in the centre of Cardiff.
In 2016 Hugh James acquired Cardiff-based legal firm MLM Cartwright.
In a statement Hugh James, which employs more than 500, said :“As an ambitious Top 100 UK law firm, we are always open to exploring opportunities to strengthen the services we offer our clients. We can confirm that we are in discussions with Loosemores Solicitors about joining forces. However, as discussions are ongoing, it would be inappropriate for us to comment any further at this stage.”
Hugh James has also sublet part of its office space at Central Square, where it is leasing more than 100,000 sq ft of space, to fund manager Brewin Dolphin, which has relocated from offices at the nearby Callaghan Square development.
Lovetovisit.com
Following a £2.1m equity investment last year, Cardiff tech firm Lovetovisit.com has appointed its first non-executive director to the board.
The firm, which is aiming to revolutionise how people book tickets for experiences and venues and also has an office in London, has appointed travel and ecommerce expert Patrik Oqvist to non-executive director.
Mr Oqvist has over two decades experience of driving high-growth e-commerce businesses. He was chief marketing officer for leading used-book retailer, World Of Books, where he delivered a successful private equity exit.
Before that, he established Hotels.com and held the position of managing director of Viator Europe, the tour and activity booking platform.
Mr Oqvist said: “I am incredibly excited by the potential for Lovetovisit.com across the globe. The things to do sector is ready for innovation, and by bringing more choice and greater convenience to families booking days out, we’re perfectly positioned to capitalise.”
Launched at the start of last year, Lovetovisit is looking to become the Just Eat and Airbnb in the events and experiences market. It was co-founded by Fed Pereira and twins Georgia and Alice Aubrey.
Mr Pereira said: “Patrik’s experience and skills, along with his detailed understands of our purpose, make him a great fit for the company. Busy families need to be able to find and book things to do quickly and easily on their mobile phones, but for years that’s been a struggle.
"Lovetovist.com makes it simple. Our massive inventory is 88% exclusive to us and tickets bought are instantly emailed and sent by text to customers. Patrik’s strengths in e-commerce, growth, customer-focus and marketing will make a real tangible impact and help us communicate that message clearly to people.”
Lovetovisit.com has continued its rapid progress since taking on £2.1 investment in 2022, and passing £400,000 of bookings in April 2023.
Further fundraisers are also planned, with the company aiming to launch in the UAE and in the US this year. It is also looking to expand in the UK domestic travel market and grow its monthly users to 10 million.
It already has 1,600 tourism and culture venues signed up, as well as partnering with industry heavyweights such as London Theatre, Encore, and Tiqets. Projections for the platform estimate monthly users of between three and five million.
Riva UK
A textiles firm in North Wales has undergone a management buyout backed by a seven-figure sum from the Development Bank of Wales. Based on Wrexham Industrial Estate, Riva UK was first established in 1993 by Rita Bird.
They now employ over 50 people and supply custom engineered textile solutions to a variety of blue chip companies, including automotive, emergency services, aerospace and industrial sectors.
Joe Quinlan, who has served as operations manager for Riva since 2017, will take over from outgoing managing director, Carl Bird, who has agreed to stay on as a consultant.
Mr Quinlan said: “Carl and Rita Bird have worked tirelessly to build the business to where it is today, and I’m looking forward to taking the mantle and building on the success they have made to date.
"We are supported by a very loyal and hardworking team and I’m excited about the opportunity this presents.
“I’m extremely grateful to the Development Bank of Wales for their support in getting the MBO completed. Their insight and expertise proved essential in making this happen for me and the team at Riva. I’d never been through a transaction like this before so I’m grateful for their input and the help from Chris Thomas at SME Finance Partners who was by my side every step of the way.”
Senior investment executive Scott Hughes and investment executive Chris Hayward structured the investment together.
Mr Hughes said: “We’re very pleased to support Joe with the acquisition of Riva. Joe has been a key part of the business success over the last few years. This business delivers unrivalled product quality and has identified new opportunities which will provide further growth and create additional jobs moving forward.”
Chris Thomas, co-founder of SME Finance Partners, said: “I’m delighted for Joe and pleased to have helped him realise his ambition of buying the business that he’s worked so hard on for the last six years. This was a good outcome for all stakeholders, allowing Joe to drive the business forward and enabling Rita & Carl to enjoy more time with their family. The Development Bank was great to deal with as Scott and Chris both put a huge amount of effort into successfully completing this deal”.
Halo Therapeutics
A company developing an easy-to-use respiratory antiviral spray for coronaviruses has secured over a million pounds in investment. Halo Therapeutics has received a £1.52m funding boost led by the Development Bank of Wales alongside Science Angel Syndicate members and the KBA Group, an angel consortium of high net worth individuals co-led by Dr Nikolaos Kostopoulos and Paras Barot.
The firm was established as a spin-out company in 2020 by Dr Daniel Fitzgerald, Professor Christiane Schaffitzel, and Professor Imre Berger and is based on world-class research carried out at Bristol University. It has now moved to Wales following a £1m equity investment by the Development Bank of Wales and will be initially based at Welsh ICE, Caerphilly.
Dr Mark Bowman, venture fund manager for the Development Bank, said: “It is encouraging to see a growing number of life sciences and medical technology companies investing in Wales. As a nation, we offer a vibrant and prosperous environment that is an attractive proposition for early-stage businesses like Halo Therapeutics as they move towards global commercialisation from a base here in Wales.”
Dr Johnathan Matlock, co-founder of Science Angel Syndicate, said: "We have worked closely with Imre and Daniel since their pre-seed round. We are delighted to have helped them to secure this latest funding round from the Development Bank of Wales. Beginning with publications in the world's leading scientific journals it is rare that you get the opportunity to see scientific innovations so rapidly translate into the clinic and one step closer to patients."
Clinical trials of Halo Therapeutics’ product to treat coronaviruses (SARS-CoV-2) are now underway following the investment. They will investigate the safety and tolerability of the treatment prior to subsequent studies being conducted in patients that are SARS-CoV-2 positive or are at risk of becoming SARS-CoV-2 positive.
Dr Fitzgerald said: “Coronaviruses are a large family of viruses. Some cause minor diseases, such as the common cold, whilst others cause much more severe disease, such as Covid-19, Middle East respiratory syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS) coronaviruses. SARS-CoV-2 enters the body through the nose.
“After several days of multiplying in this area, SARS-CoV-2 spreads to the throat and salivary glands and then into the lungs. The virus can subsequently spread to other organs, causing in some cases acute damage and long-term damage known as long-Covid.”
Professor Berger said: “Vaccination and treatments have reduced the impact of the virus but it is still a significant health risk. Our self-administered and cost-effective antiviral treatment stops the virus from entering and multiplying in the nasal epithelial cells. It is a potential game-changer in the treatment and prevention of coronaviruses, particularly in third-world countries with the emergence of new viruses.
“However, we needed support to progress with pre-revenue research and development. As our lead funder, the Development Bank of Wales has stepped-up and convinced us why Wales has such a competitive advantage in the sciences industry - the agile approach, established ecosystem, high-tech infrastructure and financial support available is second to none.”
Lexington Corporate Finance
Lexington Corporate Finance has advised on merger and acquisition deals with a value of more than £150m in less than a six-week period, with a strong pipeline identified.
The Cardiff-based firm’s best ever deal flow performance in the time frame, comes on the back of a strong start to 2023, which saw the firm join Eaton Square – an international membership of corporate finance advisers – and following a financial year that saw it complete 10 transactions.
Deals in the last six weeks include advising on the acquisition of one of the UK’s largest independent metals recycling operators, Peterborough Metals Recycling, by Derbyshire-based KJB Global Consulting, as well as the sale of Cardiff-based drug, alcohol and steroid testing service Cansford Laboratories to Phenna Group – both of which concluded in April.
In March Lexington advised the management team of Cardiff-based maritime tech firm Idwal Marine Services which saw private equity firm LDC make an eight-figure equity investment. It also acted as the corporate finance adviser to the shareholders of Cardiff-based SCS Engineering, a leader in smoke control solutions for residential and commercial buildings – to Swedish firm Systemair.
Gary Partridge, managing director at Lexington, said: “The appetite for M&A (merger and acquisition) continues to be high amongst acquisitive corporate entities, and we have seen continued overseas interest in quality businesses.
“There have been some headwinds at the start of 2023; however, Lexington has demonstrated that there are deals to be done with the right positioning and market approaches. Financial investors have capital to deploy and are looking for inventive ways to realise a return for their investors, which leads to interest and exciting deals across targeted sectors. Our pipeline remains strong and we expect to continue demonstrating our success throughout the rest of the 2023 calendar year.
“We envisage deal volumes to remain for premium businesses and acquisition appetite for corporates and private equity will remain high, which is why we continue to invest in our business and team.”
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