Finance Yorkshire latest investment fund will no doubt provide a major boost to growing businesses in the region, mainly due to support from the European Regional Development Agency (ERDF) and match funders.
After making 694 investments in SMEs across the region, as well as creating and safeguarding 9,240 jobs, Finance Yorkshire has increased its overall turnover by £265m.
One of the region’s businesses to benefit from such an investment was Hayes UK, a supplier of specialist safety, testing and servicing products to the plumbing and heating industry. The company acquired Leeds-based Arctic Products last summer, in a transaction that created the UK’s leading player in heating and plumbing consumables.
The acquisition was financed by £1.2m of development capital from Finance Yorkshire’s Equity Linked Fund in partnership with Santander’s Breakthrough Growth Capital Fund.
Now rebranded as Arctic Hayes, the business has merged 20 staff into a single location in Beeston, Leeds, and is set to grow combined turnover from £5.2m to more than £6m this year, while increasing investment in product launches and international sales.
Alex McWhirter, Finance Yorkshire chief executive, said: “Finance Yorkshire reached a milestone when it invested £90m at the end of 2014. New investment capital means that it is business as usual for Finance Yorkshire – we will continue to invest in SMEs and build on our success to date in helping to create jobs and facilitate sustainable growth across the region.
“The economic impact of our investments has been significant and we look forward to receiving enquiries and continuing our work with intermediaries to highlight the investment opportunities available and the huge value our fund brings to businesses seeking access to finance.”
Hayes UK and Arctic Products have a combined stable of trusted brands including Hayes, Arctic, ICEMAN, Sleepsafe, ph and Vortex, supplying organisations including Wolseley, Travis Perkins and British Gas as well as independent plumbing and heating merchants.
The innovative Arctic Spray products enable plumbers to freeze water in a pipe system, creating an ice plug so they can carry out repairs without draining the system.
Karl Dallimore, managing director of Arctic Hayes, said: “Bringing the two businesses together was challenging but we are now well placed for further growth. We have expanded our sales team and are investing more in marketing as we complete our rebrand and raise further awareness among plumbers and engineers.”
James Newman, chairman of Finance Yorkshire, added: “Finance Yorkshire has done an outstanding job in supporting businesses to invest, grow and create jobs. Access to finance remains one of the biggest challenges for SMEs and Finance Yorkshire’s commitment to continued investment is a real boost to the regional economy.”