Future of North Yorkshire brewery secured
The future of North Yorkshire’s Black Sheep Brewery has been secured with its acquisition by Breal Capital.
The multi-disciplinary equity, lending and advisory services company has snapped up Black Sheep Brewery, its shop and visitor centre, and its estate of public houses.
Founded in 1992 in Masham, Black Sheep Brewery employs around 150 people, and this deal will secure significant local employment and the family-run business’s future growth.
Leading on the acquisition, law firm Freeths’ restructuring partner John Jeffreys said: “We are extremely pleased to have supported our client Breal Capital in this acquisition which represents an important addition to its existing portfolio.
“The future of this well-loved Brewery has been secured with Breal’s support and we wish them every success.”
Asda acquires EG Group’s UK and Ireland business
Leeds-headquartered Asda has confirmed its acquisition of EG Group’s UK and Ireland operations for an enterprise value of £2.27bn, accelerating its growth strategy in convenience, omni-channel retail and foodservice.
Asda – owned by the Issa brothers, investment funds managed by TDR Capital LLP and Walmart – is acquiring the EG UK and Ireland business, consisting of 350 petrol filling station (PFS) sites and over 1,000 food-to-go locations, through an affiliate of its parent company, Bellis Acquisition Company 3 Limited, a wholly-owned subsidiary of the Asda Group. EG Group will retain approximately 30 PFS sites in the UK for wider group development and which will not form part of the transaction.
The transformational combination of Asda and EG UK&I will allow Asda to “better serve” a combined base of around 21m customers each week.
Following completion of the transaction, Asda plans to invest more than £150m within the next three years to fully integrate the combined business. As part of the transaction the shareholders are providing £450m of additional equity to fund the transaction.
The acquisition will strengthen Asda’s financial profile with the contribution of £195m EBITDA after rents, with additional P&L synergies of £100m expected to be generated over the next three years. These synergies mainly arise through economies of scale of the combined entity, higher volumes and cross-selling opportunities from a large and highly complementary customer base. Asda also expects to realise over £100m of working capital benefits as a result of its enlarged scale.
Stuart Rose, chair of Asda, said: “Asda’s acquisition of EG UK and Ireland will create a consumer champion like the UK has never seen. Throughout my career in retail – one thing has always been true, that meeting the evolving needs of customers is the route to growth.
“This transaction is all about driving growth by bringing Asda’s heritage in value to even more communities and accelerating the growth of its convenience retail business.”
Mohsin Issa, co-owner of Asda, said: “Asda is committed to saving customers precious time and money across their shopping baskets and on the forecourt. The combination of Asda and EG UK&I will be positive news for motorists, as we will be able to bring Asda’s highly competitive fuel offer to even more customers.
“I would like to sincerely thank all colleagues at both businesses for their ongoing efforts to serve our customers during tough economic times, and I look forward to welcoming our new colleagues from EG UK & I and expanding the Asda family further.”
Gary Lindsay, managing partner at TDR Capital LLP, said: “The combination of Asda and EG UK&I creates a convenience and food retailing champion, with nearly £30 billion in annual revenues. The two businesses are highly complementary, bringing together Asda’s traditional focus on mid-to-large sized supermarkets and EG UK&I’s on convenience retail, foodservice and fuel.
“At TDR Capital we’re proud to play our part in bringing the businesses together. We invest for the long term and this transaction is the realisation of a shared vision which began with our investment in EG in 2016. We are committed to help Asda reclaim its number two position in UK grocery, strengthening its position as a much-loved British brand that delivers great value to millions of customers every week.”
The transaction is expected to close in Q4 2023.
Asda co-owner Mohsin Issa will continue to lead the business through its ongoing transformation programme and integration of the EG UK&I business.
Mohsin will continue to be supported by Asda’s existing leadership team, which includes Michael Gleeson as Chief Financial Officer, who took up his post on 24 May.
The business has also commenced a formal search of global talent to identify a new CEO of Asda with the relevant skills required to lead and grow Asda into the future. It is expected this search process will take several months.
Alongside existing board members, Asda will hire additional non-executive directors to its Board.
York launches mental wellbeing hub for local businesses
York employers and their staff can now access a free online resource hub to help create mentally healthy workplaces.
Thanks to funding support from City of York Council, mental health charity York Mind has launched the Knowledge Hub. This is a password-accessible website which will contain guidance tailored to different sizes and types of organisations, as well as a wide range of resources including short videos, webinars and blog posts.
The Knowledge Hub is York-specific, signposting a range of local help and resources available to organisations and their employees.
Once signed up to the Hub, business leaders will be able to access free leadership-specific content and advice, including step-by-step guidance on creating and implementing a mental health strategy for their organisations, as well as dynamic content to maximise employee engagement.
Staff members will also have access to the platform, where they will find resources to help them look after their own mental health and wellbeing in the workplace and beyond.
Users will be able to access the Knowledge Hub free of charge for an initial period of 6 months from their sign-up date. After 6 months of use, the Hub will become a paid service and users will have the choice whether to unsubscribe or pay for continued access.
Councillor Pete Kilbane, Executive Member for Economy and Transport, said: “We’re delighted to support York Mind in launching the free Knowledge Hub. Investing in employee wellbeing has been proven to bring about considerable economic benefits, from boosting staff retention rates to reducing the number of productive days lost annually to staff sickness.
“National research has shown that small businesses are aware of the importance of providing mental health support to their employees, but that, all too often, they feel they do not have access to the right resources and expertise to feel confident in implementing a mental health strategy and supporting employees.
“It can be difficult to fit employee support around the time-consuming demands of running a business. Through the Knowledge Hub, business leaders and their employees will be able to access expert guidance at the touch of a button, whenever and wherever they choose.
“We hope that this new resource will help York’s businesses of all sectors to confidently support their employees.”
Simon Taylor, Head of Corporate Wellbeing Services at York Mind, said: “We are excited to be launching our brand-new and innovative Knowledge Hub, which we are confident will support businesses by offering a single source of information on a range of mental health topics.
“The Hub will also help business leaders by offering a step-by-step guide to creating a mental health strategy which we hope will support businesses to develop a positive mental health culture in their workplaces.”
To express your interest, email: corporatewellbeing@yorkmind.org.uk.
Work gathers pace on new Pickering industrial park
Members of the newly formed North Yorkshire Council have toured a construction site in Pickering as work to create a major new industrial park gathers pace.
York-based Lindum Group hosted the visit to update councillors, officers and the York & North Yorkshire Local Enterprise Partnership (Y&NY LEP) on progress at Pickering Park.
It comes two weeks after planning permission was granted for nine more industrial units at the site, which will form phase three of the Thornton Road Business Park. The council will buy and let the units once they are completed.
Site preparations and infrastructure work began in September 2022, after Lindum was awarded £880,000 from the Government’s Getting Building Fund via Y&NY LEP. Now detailed planning permission has been granted, construction work on units ranging in size from 1,500 sq ft to 3,000 sq ft will begin shortly.
Lindum development manager Andy Gardner said the site is expected to be completed by the end of the year.
“It was fantastic to show everyone how work is progressing and for the LEP to see the site coming to life,” he said. “The land was contaminated, and so initial works have included remediation, as well as installing infrastructure to enable development of serviced units.
“This scheme would not be happening without support from the Council and the LEP and I would like to applaud their commitment to pushing ahead with this development.”
North Yorkshire Council’s executive member for open to business, Cllr Derek Bastiman, said: “This development is a fantastic example of what can be achieved through collaborative working.
“Supporting new businesses and helping to grow North Yorkshire’s economy is a key aim of our new council and I am really pleased that in Pickering we will be able to provide purpose-built units for new and expanding businesses in the local area.
“It is my vision to see units like these developed across the whole county so we can give young entrepreneurs the chance to get on the workforce ladder in start-up businesses.”
David Dickson, chair of York & North Yorkshire Local Enterprise Partnership’s Place & Infrastructure Board, said: “We committed investment from the Government’s Getting Building Fund to this scheme to unlock the economic potential of the site. We’re really pleased to see the progress at Pickering Park, which will bring much-needed employment space to the area.”
Scanlans recruits property manager to further bolster Leeds team
Property management and surveying firm Scanlans has expanded its team in Leeds following further growth in demand for its services.
Neve Burnley has joined Scanlans as a property manager to manage sites at locations including Leeds city centre and suburbs, Wetherby, Ilkley and Selby.
In her previous role she was responsible for a large mixed portfolio of over 1,000 properties across 20 residential blocks, new-build estates and commercial buildings.
Neve’s appointment follows the recent arrival at Scanlans of Darran Ezard as a property manager looking after apartment blocks and other residential developments across North Yorkshire, including Harrogate, York, Ripon, Boroughbridge and Whitby.
Scanlans has secured new management contracts for a raft of apartment blocks and public open spaces in recent months, including sites in Leeds, Sheffield, Rotherham, Selby and Harrogate.
Nationally Scanlans manages a portfolio comprising over 20,000 units across more than 300 residential sites.
Alongside property management, Scanlans provides building surveying and LPA Receivership services and fire risk assessments from its Leeds operation, which is based at the Thorpe Park business and retail park.
Michael Willans, the head of property management for Scanlans in Yorkshire, said: “Neve has managed a variety of new-build properties, estates and commercial units and is a tremendous addition to our growing team. She is a customer-focused professional who builds excellent working relationships with a positive attitude.
“Her experience and attributes mean she is well-versed in dealing with the requirements of managed developments and estates.
“We are thrilled to welcome her to Scanlans, and her appointment is a further demonstration of our progress in the Yorkshire region. We hope to continue this growth with new exciting ventures throughout this year and beyond.”
Neve said: “Scanlans is a hugely respected practice with a high-quality portfolio, and takes a proactive and constructive approach to dealing with clients.
“It’s great to be working in such a varied role and alongside such a dedicated and capable team of professionals.”
Midlands Connect submits £18m investment bid to speed trains between Lincoln and Nottingham
Midlands Connect is submitting a strategic outline business case to the Department for Transport calling for an £18m investment to improve journey times between Lincoln and Nottingham.
A report titled All change: The Castle Line details proposals to make train travel more attractive, reduce car dependence and benefit the local economies.
Currently just 10 per cent of journeys between Nottingham and Lincoln are taken by rail, but if these plans get the go ahead, trains will increase from predominantly 50mph to 75mph along the route.
Maria Machancoses, CEO of Midlands Connect, said: “This is an important connection between two major urban areas, and our plans for investment represent the first step in encouraging more passengers to use the trains.
“We recognise the need to make train travel more attractive and to help people transition to sustainable transport.
“Our purpose is to create a fairer, greener and stronger Midlands. Faster connections between our towns and cities will bring a boost to the area for all the residents, businesses and visitors.”
Karl McCartney, MP for Lincoln, said: “I’m pleased to see these plans being submitted. Improving train travel times will inevitably benefit both Lincoln and the entire Greater Lincoln area. I look forward to seeing this scheme progress.”
The plans have been developed with the support of Nottinghamshire County Council, Nottingham City Council, Lincolnshire County Council, the Greater Lincolnshire LEP and the D2N2 LEP.
Network Rail and local train operator East Midlands Railway are also key stakeholders in the process. Midlands Connect recommends proposed milestones for work to start in April 2026 and have it completed by summer 2028.
New £1.5m gate system at Immingham’s container terminal promises to speed up operations
New automatic gates have been installed at the container terminal at Associated British Port’s Humber port of Immingham, which complements the existing terminal entry system.
Costing £1.5 million, the new terminal entry system will speed up the operations process in the Immingham Container Terminal, as well as improving turnaround time.
Simon Bird, Regional Director said: “This investment into a new entry system will allow us to process arrivals and departures efficiently and give the best experience to our visiting hauliers. Recent improvements and investments are shining through clearly with an average turnaround time for road haulage consistently under 30 mins within the Immingham terminal.”
He added: “Having completed a £50 million investment at the start of 2021, the Humber’s provision to serve the container sector goes from strength to strength with these ongoing investments, both in Hull and Immingham. The extra space and equipment are further evidence of the growing value the terminals have in the economic life of the North of England and the Midlands.”
The terminal already operated an automated gate entry system, but this new infrastructure gives the same facility to manage trucks in our new seven-acre empty expansion area.
Hauliers entering the terminal will need to have a valid booking with a valid unit ID. The system then provides high resolution images of the container arriving and departing the terminal.
Immingham container terminal handles 15 vessel calls a week connecting to major ports of Europe via shipping lines connecting to Scandinavia, the Baltic, the Netherlands, Germany, and Poland with a wider global reach through various deep sea feeder providers. Its prime location on the UK east coast allows cargo owners and shippers to reduce carbon, cost, and congestion for customers by landing cargo as close as possible to its end destination.
Grimsby pet food manufacturer nets help to target international growth
A Grimsby-based pet food manufacturer which produces a range of treats for dogs, is scaling up its operations by relocating to new premises and increasing capacity, helping it to target significant growth in both the UK and international pet foods sector.
Skippers Pet Products approached Finance For Enterprise and the Northern Powerhouse Investment Fund (NPIF) for investment to help it lay the foundations for significant future growth after the company outgrew its existing facility. The business was performing exceptionally, with its turnover increasing by 500%, as well as seeing its workforce grow from eight members of staff to over twenty employees in the past year alone.
The unique company, which is the only pet food provider in the UK who specialise exclusively in fish-based products, was launched by experienced fish merchant Steve Moore in 2013, after he spotted an opportunity to re-purpose co-products from high quality fish destined for the dinner table.
Using an ancient preserving technique, which can trace its origins back to the Vikings, fish are dried slowly at a low temperature, resulting in a nutritionally dense source of protein that is enjoyed by all dogs.
In recent months, the company has not only seen demand for its products increase within the UK, but also in several overseas markets, notably Canada and Hong Kong. In order to meet rising demand, the business would need a larger workforce, but with its existing facility already at full capacity, the experienced fish merchant knew the business required additional help to secure larger premises, and secure the vital equipment needed to increase capacity.
Working with senior business lending manager Tim Daniels, Finance For Enterprise helped the business to successfully secure an investment package worth £150,000, delivered through a £75,000 NPIF – FFE & BEF Microfinance loan backed by the Recovery Loan Scheme (RLS), and £75,000 directly from Finance For Enterprise.
With funds in place, Skippers recently relocated to larger premises at South Humberside Industrial Estate, allowing the company to improve efficiencies in its manufacturing processes as well as creating the vital additional working space needed to recruit up to ten members of staff to meet current demand.
Steve Moore, Managing Director, Skippers Pet Products, said: “I’ve worked in Grimsby’s fish industry since I was just 17 years old, and I recognised that when fish are prepared for human consumption, there can be large parts of the animal that simply goes to waste.
“I began to realise that as well as offering a tasty treat for dogs, there can also be health benefits when fish is incorporated into their diet. For example, some of the feedback we’ve received from our customers has included positive changes in the pet’s coat, teeth and even behaviour.
“In older animals the natural omega 3 found in fish can even help dogs suffering from inflamed joints and even arthritis, so I felt the business offered a golden opportunity to reduce the amount of waste being produced within the fishing industry, as well as improving the health and welfare of much-loved family pets.
“Having firmly established ourselves as a market leader in our industry, we knew that it was important to cement this position. This meant increasing capacity to meet demand from both the home and overseas markets.
“Pet ownership during the Covid-19 pandemic increased dramatically, and having seen the business grow so quickly during the past two years, we felt it was imperative to act quickly. To do this we needed to secure additional funds to facilitate our relocation and investment in new equipment.
“Having worked with Tim and the Finance For Enterprise team previously, I felt he understood our business, and within a relatively short period of time, we received the call to say that our application had been successful.
“The funds and help we’ve received have been transformational for our business, and through the support we’ve received from Finance For Enterprise, we’re not just helping to improve the lives of much loved pets across the world, but we’re also doing our bit to improve sustainability, as well as creating additional new jobs within Grimsby’s fishing industry.”
Tim Daniels, senior business lending manager, Finance For Enterprise, said: “Skippers Pet Products is a great example of a business that has built on the heritage of Grimsby’s historic fishing industry by finding new and innovative ways of bringing new products to market.
“Having met and supported Steve and his business previously, the business has a bright future ahead of it, not just by achieving growth in the UK, but also tapping into new international markets.”
Asda to reveal £10bn merger with petrol stations company
The owners of Asda and EG Group, the petrol stations company, are set to reveal a £10bn merger of their British operations, according to reports from Sky News.
Finishing touches were said to be being applied on Thursday (25 May), with the owners of both groups, the billionaire Issa brothers, Mohsin and Zuber, and TDR Capital, thought to be looking to announce the deal today (Friday 26 May).
Together, Asda and EG UK would form a group with 170,000 employees, 600 supermarkets, 100 convenience stores, 700 petrol forecourts, and annual revenues of nearly £30bn.
Sky News reports that Apollo Global Management, a contender to buy Asda when it was up for sale in 2020, has been lined up to provide over £500m of private placement debt to finance the deal, as indicated by banking sources.
A combination of Leeds-based Asda and Blackburn-based EG UK has been in talks since the start of the year, and would accelerate the former’s advance into convenience stores. The merger is anticipated to cost approximately £1.25bn.
Government rejects bid for new hospital for Doncaster
The bid for a new hospital for Doncaster has been turned down by government despite cross party support from local and regional politicians.
Since the summer of 2019, Doncaster Council and the Trust have been working on proposals to redevelop the Doncaster Waterfront area adjacent to Doncaster College which offered significant opportunity for redevelopment and regeneration as being one of the largest brownfield sites in the country.
Mayor of Doncaster, Ros Jones said: “I am immensely disappointed that our Doncaster bid for a new hospital has been turned down by government. Our bid was incredibly strong, highlighting the far-reaching benefits for health and medical provision that a state-of-the-art new hospital would bring as well as social and economic benefits for the people of our city and the region.
“We are in urgent need of a new hospital for Doncaster that would support us to Level Up and I will continue to lobby this government to deliver a new hospital for Doncaster.”
Richard Parker OBE, Chief Executive of DBTH, said: “I am very disappointed that the Trust’s business case for the development of a new hospital in Doncaster has not been included in the Government’s New Hospital Programme.
“Our focus now, and that of our health and social care partners and local leaders, will now need to shift towards ensuring that Doncaster Royal Infirmary is fit for the future, as well as seeking clarity to understand what additional funding avenues and opportunities are available to us.”
The existing hospital within the city, Doncaster Royal Infirmary, was initially built in the 1930s, with further development and expansion in the 1960s and 1980s and was expected to deal with around 200 patients at any one time. Since that time Doncaster and Bassetlaw Teaching Hospitals NHS Foundation Trust has outgrown the site and its related infrastructure, routinely caring for around 400 patients every day.
Due to the hospital’s age, there are around 600 outstanding maintenance jobs across DRI’s numerous buildings, with an estimated value of £118 million. The sheer cost of this is neither affordable nor best value for money.
Doncaster and Bassetlaw Teaching Hospitals is one of only a small number of teaching hospitals within the region and hosts a range of services across three main hospital sites, Doncaster Royal Infirmary, Bassetlaw Hospital and Montagu Hospital, serving around 440,000 people across South Yorkshire and North Nottinghamshire.
The estimated cost of a new hospital in the city would be around £1.37 billion, the site has been identified and is shovel-ready and the build would begin at pace, taking around five years to complete.
