Private equity firm sells West Yorkshire-based Cutwel
NorthEdge has completed the sale of Cutwel, the cutting tool distribution firm serving the SME precision engineering sector, to Inflexion Private Equity Partners.
Cutwel, based in Cleckheaton, West Yorkshire, serves over 13,000 customers across a range of sectors through a disruptive sales model.
The exit was led by Andy Ball, Partner, and John Hammond, Director, alongside the Cutwel management team. The deal provides a strong return for NorthEdge Fund II, delivering over a 3x gross return.
Since the initial investment in May 2018, NorthEdge has supported Cutwel to refine and accelerate its disruptive commercial model, alongside building a scalable platform fit for future growth through investment in people, technology and operational infrastructure.
Alongside appointing a Chair and CFO to complete the Board, the business built out the operational leadership team with six critical hires. This included a Head of Operations, who has driven a process and technology transformation to improve efficiencies, deliver operational leverage and create a platform for growth, and a Head of Sales and Marketing, who has built out the marketing, sales and account management team from 15 to over 45 people.
Alongside headcount growth, the business has placed a significant focus on improving digital customer acquisition and embedding a data-driven account management culture – resulting in a resilient and re-occurring revenue model, which enabled the business to take market share and provides resilience through economic cycles.
The business also recognised the importance of ESG in supporting its long-term growth ambitions, becoming one of the first of NorthEdge’s portfolio companies to publicly commit to a net zero target and ensuring it remained an employer of choice in the region.
From a social impact perspective, the business contributed over £31m of GVA to the UK economy in 2023, with the majority of this contribution concentrated in Yorkshire and across the North of England, achieved Great Place to Work accreditation and won a Yorkshire BVCA Vision Award.
Adam Gillard, CEO of Cutwel, said: “With NorthEdge’s support we have built a platform that is fit for future growth and we are excited to build on this momentum with our new partners, Inflexion.
“Our growth plan is focussed on building deeper relationships with existing customers; utilising our digital and data capabilities to acquire new customers; continuing our focus on operational excellence and expanding our product range.
“It is thanks to NorthEdge’s belief in our team and our plan, alongside their local, practical and commercial support that we are in the position to take this business to the next level.”
John Hammond, Director at NorthEdge, added: “We are proud to have played our part in supporting Cutwel achieve strong top and bottom line growth, despite the challenging market conditions the business has faced since our initial investment.
“By refining and investing in its disruptive sales model and operational platform, the business has continually outperformed competitors whilst retaining its focus on being a great place to work for its people.
“Cutwel is a great example of a regional business creating local and national impact, ready for the next stage of its growth journey. We are delighted to have delivered another strong exit for Fund II and remain excited to see what Adam and the Cutwel team achieve over the coming years.”
Plant-based meat alternatives business, The Tofoo Co. acquired
Comitis Capital has acquired The Tofoo Co., a plant-based meat alternatives business with over 60% market share in tofu.
The Tofoo Co., headquartered in Yorkshire, was acquired in 2016 by David Knibbs and Lydia Smith. Beyond its core tofu portfolio, The Tofoo Co. offers a selection of value-added tofu products as well as other plant-based meat alternatives such as tempeh and seitan.
With a strong holding in major retail, the company is expanding its food service channel with restaurant chains such as Wagamama.
Nikolaus Bethlen, Managing Partner at Comitis, said: “The Tofoo Co. has firmly established itself as a leader in the plant-based meat alternatives market with a strong brand image offering high-quality products.
“David Knibbs and Lydia Smith have built a remarkable enterprise that is ready for the next phase of growth. The Tofoo Co. represents a great addition to our portfolio, covering the thriving plant-based food market.”
Felix Jauch, Investment Associate at Comitis, added: “We are thrilled to collaborate with visionary entrepreneurs who are eager to foster growth, and the team at The Tofoo Co. perfectly embody this spirit.
“Together, we share a unified vision of propelling The Tofoo Co. into a leading position in the international plant-based meat alternatives market. With our investment, expertise, and extensive network, we are committed to fueling the company’s dynamic expansion plan.”
Existing management David Knibbs and Lydia Smith will remain invested in the business and continue to steer the company’s growth in the UK and international markets.
David Knibbs, Managing Director of The Tofoo Co., said: “We chose Comitis as our partner to enter a new era of rapid expansion. Their deep understanding of our business model and entrepreneurial thinking has left us convinced that they are the right choice to bring The Tofoo Co. to the next level.
“Their value-based investment approach aligns perfectly with our vision, and we see significant opportunities for The Tofoo Co. ahead.”
“The Tofoo Co has plans to grow further, both with existing & new customers and channels, and needed a strong and proactive partner to help that growth journey. Comitis are a great fit as that partner for this next chapter of Tofoo Co’s growth journey,” said Lydia Smith Executive Director of The Tofoo Co.
Comitis was advised by MCF Corporate Finance (Buyside Financial Advisor), CADEN Strategy (Commercial), Eight Advisory (Financial, Tax and Operations), and Orrick, Herrington & Sutcliffe (Legal).
Aptean expands global footprint with acquisition of Wakefield firm
Aptean, an AI-driven ERP solutions firm, has acquired SSG Insight, a provider of Enterprise Asset Management (EAM) solutions headquartered in Wakefield.
The acquisition of SSG immediately increases Aptean’s EAM geographic footprint. SSG also bolsters the capabilities of Aptean’s cloud-based EAM offerings, which are purpose-built for manufacturers, distributors, logistics providers, healthcare facilities, light rail operators and other asset intensive industries.
Founded in 1983, SSG provides Agility, a mission-critical suite of EAM solutions designed to manage complex challenges across global sites with a smart ecosystem of connected data. SSG delivers a scalable and integrated suite of CMMS and EAM solutions which give total control over asset lifecycle management, workflow automation, condition monitoring, contract / vendor management, and advanced analytics.
The team at SSG possesses deep industry expertise across Aptean’s core focus areas including food manufacturing, industrial manufacturing, light rail, retail distribution, and healthcare facilities, among others.
“SSG has a proven track record with over 40 years of experience delivering mission-critical enterprise asset management solutions across the United Kingdom, Europe, Australia, and North America,” said Duane George, President of EMEA and APAC at Aptean.
“SSG’s Agility product suite delivers robust software solutions specifically designed to manage complex enterprise asset management challenges and is backed by a team of seasoned industry experts. We are thrilled to welcome the SSG team and customers to Aptean.”
Mike Edwards, CEO of SSG, said: “We are delighted to join a global organization like Aptean, where together we can continue to develop and deliver innovative enterprise asset management solutions to the market.
“The combination of our businesses offer an exciting opportunity for SSG’s future growth given our shared commitment to the long term success of our products and customers. Additionally, being part of Aptean presents our customers and our team with exciting opportunities for growth and development and we can’t wait to get started.”
Works commence to support riverside development in Rotherham
Esh Construction has commenced public realm improvement works which will support further riverside development in Rotherham town centre.
Procured through YORhub’s YORcivil2 framework on behalf of Rotherham Metropolitan Borough Council, Esh will deliver upgrades on land just off Westgate, while highway upgrades will be actioned on Water Lane.
A new carriageway will be constructed at Water Lane to improve existing vehicular access and provide a link to a new riverside footpath which will reconnect Water Lane to Rotherham town centre. Cut and fill operations, deep drainage works, Japanese knotweed remediation, pavement construction and new fencing is required, while gabion baskets will be used to create a retaining wall feature along the new pathway.
Michael Sherrard, Construction Manager at Esh Construction, said: “We look forward to bringing our expertise to this project which will play an important role in improving and facilitating the connectivity of Rotherham Riverside for the future development of the town.
“Esh has vast experience in delivering public realm projects and we are thrilled to continue our working relationship with Rotherham Metropolitan Borough Council.”
Esh’s civil engineering division will also carry out repairs and remedial works to the existing river walls, with 180m long sheet piles up to 18m in depth being installed to strengthen the river wall. A capping beam will also be added on top to secure the wall structurally and support a guard rail, while cosmetic repairs will be carried out to the existing masonry river wall by rope access trained personnel.
The project builds on the success of Esh’s recently completed active travel schemes for Rotherham Council, which include Wellgate and Broom Road, as well as Sheffield Road Cycleways and Maltby Bus Corridor.
Having acquired the land in December 2022 the project forms part of the Council’s continued investment into the town centre, bringing new homes, leisure uses and improved public realm.
Rotherham Council’s Cabinet Member for Transport, Jobs and the Local Economy, Cllr Robert Taylor said: “The access road and creation of a new walkway into the town centre will really complement the new housing developments and leisure scheme at Forge Island. The route will support us to continue to breathe new life into this side of the town by helping facilitate new housing developments in the future.”
Accountancy practice makes Leeds move
As part of its ongoing commitment and investment in Yorkshire, a longstanding firm of chartered accountants and business advisers is expanding into Leeds after signing a lease on new offices at Wellington Place.
Saffery, established in 1855, currently employs a 70-strong team in Yorkshire and has had a base in Harrogate town centre since 1992. In addition to its new 5,213 sq ft office at 10 Wellington Place, the firm will retain office space and meeting rooms in the spa town.
Providing a more spacious, modern and open plan office environment, the newly fitted out Grade A office space sits in the heart of Leeds city centre’s financial and professional services district.
Saffery partner and head of the firm’s Yorkshire office, Jonathan Davis, said: “We’re a partner-led and people-focused firm, that is wholeheartedly committed to our clients. For the last 32 years we’ve worked hard to establish a strong reputation in Harrogate and North Yorkshire, and we are proud of that heritage, whilst being firmly focused on the future.
“During this time, we’ve also successfully built up a quality client base in Leeds and across the wider Yorkshire region. Our clients want to work with an independent firm, that’s boutique in style and that focuses on achieving their aims with real expertise and a true commitment to relationships. We remain local in nature and style, but with the backing of a wider national and international support network when required.
“Moving to our new office space, very close to Leeds City Station, will significantly help with recruitment, as we look to invest further in our talented team of senior advisors and young, ambitious professionals. This move will also mean we remain very accessible for clients across the whole of Yorkshire and beyond.
“All this makes it the right place for our firm as we start the next chapter of our story, and we’re therefore delighted to sign this lease and look forward to moving to Leeds later this year.”
Paul Pavia, head of development at MEPC, the developer and asset manager behind Wellington Place, said: “We pride ourselves on being a leading destination for the professional services sector. It will be a privilege to welcome Saffery, a well-established firm with over three decades of history in Yorkshire, and a significant presence across the UK and beyond, to Wellington Place.
“Saffery’s new home at 10 Wellington Place will offer them the highest quality office space and a superb environment to deliver its services. The team will be joining an inclusive and friendly community with an exceptional food and beverage offer, an extensive events programme and many on site amenities, all just a short walk from Leeds train station. We look forward to supporting Saffery as they embark on this new chapter in Leeds.”
Wakefield automation business sold
Endless has successfully exited its investment in bespoke automation business Sewtec Automation to USA-headquartered Automated Industrial Robotics Inc (AIR).
Endless supported the management buy out of Sewtec in 2017, taking it out of founder ownership with Mark Cook joining the business as Managing Director at the time of the acquisition.
To support and enable growth, the business then relocated its entire operations in 2020 to a state-of-the-art 75,000 square-foot design and manufacturing facility in Wakefield and more recently opened a satellite office in Taunton.
Sewtec today has a team of over 170 employees, more than double the number at the time of the Endless acquisition, and now serves a range of brands across various sectors, including pharmaceutical, medical devices, food and beverage, personal care, pet care and e-commerce.
Endless investment partner, Andy Ross said: “It has been a real privilege working closely with Mark and the entire team at Sewtec over the last few years.
“We knew it was a special business from the start and our role was to provide guidance and support to the management team to help them take their unique capabilities to new customers and markets. The site move was a big positive step forward to allow the team to grow the business responsibly and sustainably.
“At Endless, we are only ever a temporary custodian of our businesses and whilst we are sad to see them go…we look forward to seeing what the Sewtec team can achieve as an integral part of the AIR portfolio in the future.”
Sewtec now joins Totally Automated Systems (TA Systems) and Modular Automation as a foundational asset of the AIR portfolio. With the acquisition of Sewtec, AIR now has over 400 employees and an automation hub footprint of approximately 275,000 square feet across the United States, Ireland and the United Kingdom.
As part of the transaction, Mark Cook, now Co-Managing Director of Sewtec, was also appointed as Chief Operating Officer of AIR. He added: “This transaction represents an exciting new chapter in Sewtec’s long history. I believe AIR is the right partner for Sewtec as we look to grow our business with existing and new customers.
“We look forward to leveraging the skills and know-how across AIR to further our ability to invent innovative solutions that help our customers solve complex operational challenges.”
The investment in Sewtec was managed by Andy Ross and Stefan Nowakowski from Endless. Endless was advised on the sale by Tim Day, Josh Harvey and the team at Rothschilds (corporate finance) and Mae Salem and her team at Squires (legal).
Due diligence support was provided by Chris Stott and Chulanga Jayawardana and their team at KPMG (financial) and Tom Klouda and his team at EY (tax).
Professional services group appoints new chairman
Professional services group Gateley has appointed Edward Knapp as an Independent Non-Executive Director and Chair Designate. Edward becomes a Non-Executive Director with immediate effect and will become Chairman when Nigel Payne steps down from the board on 1 November 2024.
Edward is a global business leader with extensive experience in growth strategy design and delivery, technology, risk management and transformation with a particular focus on professional and financial services.
He has held executive and senior leadership roles in consultancy and professional services, high-growth technology companies and major financial institutions worldwide, including McKinsey & Company, Barclays, HSBC, Revolut and M&G, where he has most recently brought a particular focus on advisory, wealth management and talent.
As a member of the UK Endorsement Board he is accountable for influencing, endorsing and adopting standards for audit, accounting and professional services spanning UK PLCs.
He currently serves as a Non-Executive Director of F&C Investment Trust plc and has extensive international private-equity backed and plc board and advisory experience, including Chairman of the Audit and Risk Committee and Non-Executive Director of AIM company Ten Lifestyle Group plc and formerly as a Non-Executive Director of Mattioli Woods plc.
On appointment, Edward will become a member of the Remuneration, Audit and Risk and Nomination Committees. From 1 November 2024, he will take over the role of Chairman of the Board, and Chairman of the Nomination Committee.
Rod Waldie, CEO of Gateley, said: “On behalf of the board, I thank Nigel for his significant contribution to the Group throughout the nine year period since IPO. His experience, tireless commitment, clear perspective and support have been instrumental in growing the diverse and resilient professional services business that Gateley is today.
“I am delighted to welcome Edward to the board. He brings extensive and valuable executive and non-executive experience across a range of sectors, commercial acumen and strong and effective leadership. He will be an excellent chairman for the Group.
“I very much look forward to working with Edward as we continue to grow the Group, maximising the strengths and opportunities generated by the unique combination of professional services in our business.”
Edward Knapp, incoming Chair of Gateley, said: “It’s an honour to be appointed as the next Chairman of Gateley. Nigel and the whole team have achieved so much since IPO. The business has an extraordinary track record and heritage of delivering for clients across its legal and professional services capabilities.
“I am looking forward to engaging with our clients, colleagues, communities, shareholders and the whole board to help Gateley navigate the next chapter of outstanding client service, capitalising on its compelling talent proposition to deliver sustainable profitable growth and shareholder returns for the long term.”
Cranswick quartet wins place in world barbecue championship
For employees of Hessle-based Cranswick Foods have won a place in the Steak Cookout Association BBQ World Championships in Fort Worth, Texas.
They are members of the Hog and Beyond BBQ team, and earned the place in Texas by winning first place at the UK BBQ Championships at the Smoke and Fire Festival in Maldon. Our team consisted of Simon, Group Head of Innovation, Matt, Site Director, Ben, Senior Innovation Chef, and Connor, NPD Chef.
A company spokesman said: “This was an amazing achievement with some really tough competition from the other teams, which included some of the best European teams on the competition circuit and the previous world champions.”
Paloma Capital wins planning consent for four units at Sutton-on-the-forest
Paloma Capital has been given planning consent for four new industrial/warehouse units at its business park on the outskirts of York, which means the scheme now offers design and build opportunities for units up to 15,400 sq ft.
Formerly known as Green Park Business Centre, the 122,000 sq ft site on Goose Lane in Sutton-on-the-forest was acquired by Paloma Capital in 2022 and subsequently rebranded to become ‘York North’.
Jeremy Thiagarajah, Director for Asset Management and Investment at Paloma Capital said: “This site fits well with our acquisition strategy for investing in well located sites in under supplied areas. Whilst we have already committed to a major refurbishment programme of existing accommodation, the provision of four new state of the art units will help to fulfil current demand for purpose-designed, last mile logistics space where occupiers can influence the design.”
York North benefits from strong regional connectivity, just five miles from York Outer Ring Road at Clifton Moor.
Ports of Grimsby and Immingham form a vital link in UK’s food chain
The Ports of Grimsby and Immingham together are the leading UK ports for fish imports, and a vital link in the supply chain, according to ABP.
