PRESS RELEASE

April 17 2008
Vellacine MBO sets firm on expansion path

Vellacine Ltd of Cardiff, which manufactures and installs aluminium and uPVC windows, doors and conservatories, has been the subject of a Management Buyout.

It has been purchased by its management for an undisclosed sum, and the new owners plan to keep the business moving ahead on a path of steady growth. The business plan foresees taking on five additional staff in line with the anticipated growth in sales in the next three years.

The vendors of the company, which has a turnover of £4 million and employs 30, were advised by leading independent Cardiff accountants BPU.

Nick Toye, Director of BPU said: “We are delighted to have been able to play a key role in the deal, and we wish the new management team continued success. Vellacine is a very strong brand in the Welsh market, catering for both large commercial projects and domestic work, to the highest standards.”

Vellacine has many important projects to its credit, including the University Hospital of Wales in Cardiff.. The firm also works with local authorities and house builders to supply and fit on a large scale, as well as bespoke, individual work.

The new owners are Mark Nayler, Chris Johnson, Nick Reed-Perez, while Anton Woodhouse has been brought in to complete the team.

Mark Nayler, the new managing director, is looking forward to the company achieving new levels of customer service and satisfaction across all aspects of its business. “As well as manufacturing and fitting aluminium and uPVC products, Vellacine offers a full repair and maintenance service for both commercial and domestic customers, and also has a large trade counter supplying both trade and domestic customers with replacement window and door hardware, “he said.

Richard Coppock of RCA Corporate Finance advised the purchasers. “This is a well established company with a traditional base which the new team is planning to build upon,” he said. “Going forward, the business plan predicts sustained and steady growth, capitalizing on the company’s reputation for reliability and quality.”

Funding has been provided by HSBC and Finance Wales. Nick Larcombe, Investment Executive at Finance Wales, said: “The MBO team realized and fully understood the opportunities at Vellacine and through careful planning they have embarked on and successfully achieved a buyout which will secure the future of the business and ensure continued growth. Finance Wales is pleased to have been able to support the deal.”

Jonathan Bridgeman, Senior Commercial Manager, at HSBC Bank, Cardiff Bay said “This was an excellent opportunity to provide funding whilst acquiring the banking relationship of a well established and successful South Wales business. The experience and knowledge held by the new management team of the business will provide continued stability whilst enabling them to embark on a period of growth.”
 
The company, which started in a garage in Cardiff in 1978, was launched by Cliff Chapman and Lyn Sedgmond. As business increased, the firm moved to larger premises in Penarth. As the development of Cardiff Bay unfolded in the Eighties, Vellacine moved to their present location in Hadfield Road and will be celebrating their 30th anniversary next month.

Ends

More information Nigel Gabriel 01446 411360 / 07890 170469