Here we feature the latest business deals in Welsh business, from fundraising and acquisitions to management buyouts.

Magstim

Medical devices firm Magstim

West Wales-headquartered medical devices firm Magstim has expanded in a deal acquiring the product portfolio of a leading health tech firm.

Magstim, a global leader in transcranial magnetic stimulation (TMS), has acquired the product portfolio of Electric Geodesics Inc (EGI),from Royal Philips. The value of the deal is not being disclosed.

TMS, which Magstim pioneered, is a non-invasive outpatient therapy for major depressive disorder.

EGI designs non-invasive electro-encephalography (EEG) technologies to monitor brain activity and deliver transcranial electrical stimulation in brain research.

Magstim is acquiring EGI’s hardware, software and sensor nets assets and will immediately manage global sales, service and support. Philips will support the transition to year end.

Magstim employs 100 at its HQ in Whitland. It has also operations in the US and Holland, with a total workforce of 300,

Lothar Krinke, group chief executive of Magstim, said of the deal: “This adds high-density EEG to our product portfolio supporting more than 1,200 research labs and clinics that focus on mental health, brain disorders and cognitive neuroscience.

“Magstim has been pioneering and advancing transcranial magnetic stimulation for 30 years. High- density EEG closes the loop for the development of a comprehensive system for non-invasive neuromodulation. Magstim and EGI share a legacy and passion for innovation in neuroscience.

Glamorgan Telecom

One of Wales' leading telecoms solutions businesses, Glamorgan Telecom Group has been acquired by Onecom.

The deal, the value of which hasn't been disclosed, sees the Cardiff-based group become a Onecom company with its senior leadership, including managing director Kelly Bolderson, remaining with the business.

Mrs Bolderson become the majority shareholder in the business after leading a management buyout three years ago in a deal providing an exit for founding director Neal Pughe.

That deal was backed by the Development Bank of Wales (then Finance Wales) which took a 15% equity stake and also provided the business with £1m of debt finance.

The acquisition represents the first of a number of acquisitions planned by Onecom, led by former O2 executive Ben Dowd, after it secured a £100m funding package from LDC and Ares Management Corporation last year.

It will strengthen Onecom’s presence in South Wales and the South West, and provide  cross-selling opportunities as it combines Glamorgan Telecom’s established fixed-line telephony offer with its mobile and cloud-based services.

Founded in 2002 and headquartered in Fareham, Hampshire, Onecom has doubled its revenues over the last five years. It employs 400 people across seven regional offices and its partners include Samsung, Apple, Vodafone, Mitel and Gamma.

The UK’s business-to-business mobile telecoms market is growing by 4% per annum and acquisitions are set to provide Onecom with additional scale in a growing market.

Ben Dowd, chief executive officer at Onecom, said: “The telecommunications sector is playing a crucial role in supporting the operational resilience of businesses across the UK and will continue to do so as we look ahead to an increasingly digital economy over the next three years. SMEs spend as much as £8bn a year on telecoms and connectivity which will ultimately fuel and accelerate our growth.

 "LDC’s investment has already provided us with major impetus and further strategic acquisitions will undoubtedly complement the high level of organic growth we plan to deliver as we scale and diversify our services.

“Kelly and the Glamorgan Telecom team have achieved an outstanding reputation as a market leader, regionally, and I’m looking forward to working with them as part of Onecom to strengthen the business’ already-enviable offer for its customers.”

Managing director of Glamorgan Telecom Kelly Bolderson

Ms Bolderson, said: “The telecoms sector is growing rapidly, with customers increasingly requiring a comprehensive service offering to support their evolving needs.

"We will continue to be known for our strengths in on-premise solutions, however, the rollout of 5G and superfast fibre broadband presents significant opportunities for us to broaden our appeal.

"Onecom’s capabilities in mobile services will enable us to capitalise on those opportunities swiftly and support our customers in more ways than ever before.”

Sam Macalister-Smith of the Development Bank of Wales said: “As long-term investors of Glamorgan Telecom we’ve continued to support their growth strategy as they have grown to become the leading provider of telecommunications and connectivity solutions across Wales and the South West.

"This acquisition is a real credit to Kelly and the team who have worked tirelessly to build the business. We wish them every success.”

Onecom was advised by PwC and CMS while Glamorgan Telecom Group was advised by Gambit Corporate Finance and Capital Law.

Portmeirion

Portmeirion

The iconic Portmeirion holiday village and resort in North Wales has secured a seven-figure loan from HSBC.

The resort, which has reopened, has secured funding from the UK Government's Coronavirus Business Interruption Loan Scheme, which is administered via the British Business Bank with more than 80 accredited lenders

The Italian renaissance-style village, near Porthmadog, became world famous in the 1960s when it provided the backdrop for the cult classic TV series The Prisoner.

The village was forced to close to day-trippers and holidaymakers following the Covid-19 outbreak but has now fully reopened its two hotels, 13 self-catering holiday cottages and on-site restaurants.

Overnight guests form a significant part of Portmeirion’s revenue, and since July 6, as per guidance from the Welsh Government, only day-trippers were allowed to visit the famous site.

The funding from HSBC UK ensures that the village can cover its substantial fixed costs throughout the year and protect the future of its workforce following the disruption of its usually busy spring and early-summer period. Portmeirion implemented the UK  Government’s furlough scheme for 99% of its 239 employees, with the vast majority now back at work.

Robin Llywelyn, managing director of Portmeirion, said: “Thanks to HSBC UK’s support, we were able to ensure Portmeirion was ready to open for business as soon as it was safe to do so.

“The funding has secured the future of the resort and ensured that our employees have been taken care of while the furlough scheme is in place.

“We take pride in Portmeirion’s architectural heritage, especially as its popularity allows us to help support the local economy.

“This funding will enable the village to continue in its role of helping support the local economy for many years to come.”

Simon Pearson, corporate relationship director, North Wales and Cheshire, HSBC UK, said: “Portmeirion has established itself as one of the most sought-after holiday resorts in the UK and we’re happy to support the future of the village despite these unprecedented times.”

Creo Medical

Creo Medical

One of Wales' leading life sciences firm, Creo Medical, has expanded with a £25m acquisition of a Spanish venture.

Chepstow-based and Alternative Investment Market listed, Creo Medical, which specialises inn devices in the emerging field of surgical endoscopy, has acquired Albyn Medical, a specialist in the supply of gastrointestinal (GI) products to healthcare provider.

Of the cash deal around £2m is contingent on the performance of Albyn over the next two years, at which point Creo would take its ownership stake from 90% to 100%.

Creo has funded the acquisition after raising more than £50m through a share issue last year to support its growth plans, including acquisitions. The fundraising was one of the biggest by a UK life sciences firm last year.

With a firm foothold now in Europe, the company could look at further acquisitions aimed at driving its presence in the North America.

It was boosted last month with the simultaneous CE marking status for five new devices in the field of surgical endoscopy, in a development described by its chief executive as an “amazing milestone.”

The firm has developed new devices which form the Creo GI suite of advanced energy devices across four technology platforms.

The CE marking of the full range of products provides EU and UK clearance.

The acquisition of Albyn Medical, which was originally set up in Scotland,  provides a direct route-to-market for Creo’s full suite of CE marked GI advanced energy devices.

Chief executive of Creo Medical, Craig Gulliford, said: "Albyn Medical is an exceptionally good fit with Creo. The enlarged business brings together a wide range of highly complementary GI products, with an opportunity to broaden the portfolio into urology, and provides us with an extensive marketing and sales capability to support our commercial presence in Europe and the roll-out of our innovative range of advanced energy devices.

"I am delighted to welcome Luis and his team to the Creo family and we are all looking forward to working together to radically transform the way flexible endoscopy is used in Europe.”

The acquisition of Albyn increases Creo' headcount to 175.

Creo's share price was up more than 6% in early trading.

Swallow Yachts

Swallow Yachts

Cardigan-based Swallow Yachts has secured a £140,000 financial lifeline from Barclays via the UK Government’s coronavirus loan scheme.

Swallow Yachts is back in production after suffering the double blow of a major workshop fire last year and then the added impact of the pandemic.

The funding from Barclays has come from the Coronavirus Business Loan Interruption Scheme (CBILS) which is administered by the UK Government’s economic development bank, the British Business Bank.

Matt Newland, director of Swallow Yachts, said: “I have been a sailing fanatic for over 35 years and ensure my passion, experience and attention to detail goes into every boat.

“We build between 25 and 30 boats a year ranging from £17,000 to £75,000 and export to Japan, Australia and America but the core business remains UK and European based.

“A workshop fire and impact of the pandemic put real pressure on our business, resulting in us furloughing 80% of the workforce. Luckily the support from our bank, Barclays, and our loyal customers has now enabled us to return to production and retain our workforce, albeit with some new distancing measures installed across our production process.”

Sally Phillips, Barclays business manager, said: “It is essential that we support local businesses such as Swallow Yachts. The UK Government-backed CBILS loan was all agreed and drawn down very quickly, and with no interest or capital repayments for over 12 months gives the business confidence in coming out the other side.

“The loan is critical in getting businesses through this period which like most businesses, puts enormous strain on cash flow.

“The impact of this pandemic will be felt for years to come by business because the debt has to be repaid, but hopefully, when this is over, people will go out and support British business as a whole, to help get everybody back on their feet.

“Matt is a great example of an entrepreneur using their experience, contacts and skills to develop a successful business.

“By really understanding the business and issues they have faced, Barclays has been able to support the business throughout its development.

“It’s great to see a local Welsh manufacturing business continuing to compete in a global market.”

Mr Newland said: “We have faced a number of challenges over the years as we provide a luxury product but we still continued to increase turnover every year as we maintained our strong marketing strategy, and with interest rates so low many clients chose to invest in a luxury item they could enjoy. We hope to emerge stronger and leaner from the experience and are optimistic for the future.

"We recognise the importance of traditional boat building but also embrace the latest technology as we are planning to further invest in computer-controlled machinery and we even use a 3D printer to produce some of the smaller bespoke components.”

DMM

DMM sponsored athlete, Emma Twyfor. Image by Ray Wood.

A North Wales manufacturer of climbing and height safety equipment is gearing up to increase exports following a seven-figure lending deal with HSBC.

Llanberis-based DMM, which was established in 1981, designs and manufactures rock climbing, mountaineering and work at height equipment, exporting over 65% of its products across the world.

The Coronavirus Business Interruption Loan Scheme (CBILS) backing from HSBC has allowed it to continue to import raw materials, replace machinery and develop and manufacture new products aimed at climbers and tree care professionals.

Over the last 10 years, DMM has pursued an export focused growth strategy. Despite the impact of Covid-19 on sales and production, the business is progressing with its plan to grow its market share in Europe and North America by establishing two dedicated in-country sales and marketing subsidiaries.

 DMM’s target is to triple the size of its US market share and achieve 50% growth in the EU over the next six years.

Richard Rust, financial director of DMM, said: “We’re a well-established business, having always produced the majority of our market-leading products here at our forge and factory in the rock climbing paradise of Llanberis.

"With all that experience comes the understanding that resilience will allow us to invest in our UK factory and continue with our successful export drive. The funding from HSBC UK and the bank’s international reach has given us the confidence to make long-term decisions in the midst of difficult trading conditions.”

Peter Wilbraham, corporate relationship director for HSBC UK, said: “DMM is a fine example of a UK manufacturer that leads in its home market whilst also looking to grow its business overseas.

"We’ve worked with the company for more than 10 years and we look forward to seeing it launch more innovative products, reach new markets and create skilled jobs in North Wales.”

Founded by climbers, every piece of hardware bearing the DMM name is not only designed and tested but also manufactured in North Wales. The business employs 200 people and provided the iconic ice axes for the 2001 & 2018 Tomb Raider films."

Pwinty

The Development Bank of Wales has confirmed its exit from Pwinty, the Cardiff-based API (application programming interface) platform that specialises in international print fulfilment.

Pwinty was established in 2016 by Tom Gallard with an equity investment of £120,000 from the Development Bank of Wales. As an API platform specialising in international print fulfilment, Pwinty developed a global network of on-demand printing manufacturers before being acquired by the Prodigi Group in 2017.

Together with Pwinty, Prodigi is now building a global print on- demand network designed to let businesses, brands and retailers transform digital imagery into physical products such as T-shirts, photo books, canvases and 3D prints.

The software engineering hub in Cardiff employs 120 people and Group turnover is expected to double this year from £18m in 2019/20.

Mr Gallard, now chief technology officer for the Prodigi Group, said: “As the saying goes, mighty oaks from little acorns grow. Thanks to the backing of the Development Bank, we have enjoyed exceptional growth since our launch in 2016.

“After winning several large deals with Prodigi, it became increasingly obvious that we shared a similar vision for the future and could grow much faster by combining our resources.

“Our growth since the merger has been phenomenal and it is now time for us to rationalise our shareholding structure. We are very fortunate to be in a position where we can repay our initial backers but we remain incredibly grateful for their support and guidance during our early years.

“We’re now focused on scaling our business globally from our base in Cardiff. We’re excited about our future and urge anyone with an idea and a desire to start up their own business to have a chat with the Development Bank. It could be the best phone call you ever make.”

Sam Macalister-Smith, portfolio executive with the Development Bank of Wales, said: “The growth of Pwinty as part of the Prodigi Group is a real success story for Wales and a reflection of the great things that can be achieved when you have the right investment partner.

“Our funds are perfect for tech ventures that need initial venture capital to finance the early stages. Our flexibility means that we can work with a business providing patient capital and also exit at a time that is right for all involved. Having worked with Tom from day one, it’s great to see how well the business is now doing and we wish them every success with their future plans.”

The Development Bank of Wales was advised by Geraint Tilsley, of Geldards.

The development bank would not disclose the value of its exit, but said there was a positive return on its original investment.

Bond Digital Health

Cardiff-based medtech firm Bond Digital Health has received more than £200,000 in government grants to help it develop its connectivity and data platform for a new Covid-19 test.

The firm has been awarded two major grants in the space of a month for its innovative Transform technology – £177,979 from the Welsh Government and £49,796 from Innovate UK, the UK’s national innovation agency.

Bond is part of an international consortium that is producing a new diagnostic test for patients suspected of having Covid-19.

The company is adding its digital connectivity to the lateral flow antigen test to allow valuable data to be securely captured, stored, analysed and shared in real time. This could allow authorities to monitor the spread of the coronavirus pandemic.

Bond applied for the grants to help support the ongoing development of Transform to meet the particular requirements of the new test.

The Welsh Government provided funding through its Covid RD&I support scheme, while Innovate UK awarded funding through its Business-led Innovation in Response to Global Disruption competition.

Phil Groom, commercial director of Bond Digital Health, said: “These two grants represent a huge vote of confidence in our business and our technology from both the Welsh and UK governments.

“We are proud to be part of an international consortium whose test will make such a difference in this pandemic, and even more proud to be flying the flag for Welsh technology and talent on the global stage.”

Earlier this year Bond received equity funding totalling £700,000 from Development Bank of Wales and Wealth Club, the high net worth investment service, to expand the technology team and to speed up development.

CB Refrigeration

Left to right Jason Beament and Tom Hannaby of CB Refrigeration

Caerphilly-based CB Refrigeration has been acquired in a management buyout from Tom Hannaby in a seven-figure deal.

Having joined the business just four years ago, Mt Hannaby will work alongside directors Jason Beament, Andrew Hall and Simon Beament as managing director and majority shareholder.

Funding for the management buyout has been provided by the Development Bank of Wales with specialist succession planning support provided by Mervyn Ham, of Iridium Corporate Services.

Founded in 1968 as a small family business, CB Refrigeration initially supplied and serviced commercial refrigeration equipment.

Directors Jason Beament, Andrew Hall and Simon Beament acquired CB Refrigeration in 2016 and have since developed the business alongside their electrical installation company, Ayjay Group. Together, they now provide a full refrigeration and air-conditioning turn-key solution.

With continued growth since 2016, CB Refrigeration now specialises in the design, installation and maintenance of bespoke refrigeration solutions for a diverse range of sectors across the UK. These include retail, hospitality, industrial and pharmaceutical.

As managing director, Mr Hannaby will lead the team of 20 staff to deliver further growth.

He said: “From day one of joining the business, I have worked closely with the directors to make the right investments to deliver our long-term goals.

“We’ve remained focused on delivering our growth strategy and sourced the expert help of an excellent advisory team to ensure that we had the right support and headroom to grow.

“We’ve got a great business and we’ve remained resolute in our collective ambition to do what’s right for the business and our people.

“The support of the Development Bank of Wales and Mervyn Ham, of Iridium, has really helped us to get to where we are today, particularly as Covid-19 could have disrupted our plans.”

Ruby Harcombe, of the Development Bank of Wales, said: “This really is a textbook case of a successful phased management buy-out and we’re particularly pleased that the transaction progressed during lockdown.

“The directors worked closely with their senior management team to initiate the buyout and prepare for the handover in a timely manner. They will now remain closely involved to ensure continued support.

“Working with the team, we are delighted to have provided the necessary funding and have every confidence that the business will continue to thrive as they forge ahead with great determination and resilience.

“It’s a win-win situation for everyone involved.”

Mr Hannaby was advised by Bethan Darwin, of Thompson Darwin.

Si-lwli

A Welsh-language nursery in Cardiff is under new ownership in a deal backed with a six-figure lending facility from NatWest.

Si-lwli Nursery has been acquired by Graham and Charlotte Forrester.

The new owners secured a£250,000 loan from NatWest to part-finance the acquisition.

Si-lwli, which was established in 2003, has a capacity for 51 children.

Mrs Forrester a qualified nursery practitioner, and her husband, Graham, have become directors of the nursery and have retained the existing team of 21 full- and part-time staff.

Mr Forrester said: “When the opportunity arose to purchase Si-lwli it was an easy decision for us, given our business and childcare experience, to take over ownership.

“Not only is Cardiff a growing city with increasing demand for childcare, but there are a limited number of Welsh-medium nurseries like ours.

“With the Welsh Government’s vision for a million Welsh-speakers by 2050, immersing children in the language at a young age is crucial.

“Thanks to the support from NatWest, we were able to purchase the nursery and use the time during lockdown to update the building, creating a more modern and child-friendly space for playing and learning.

“We have now reopened our doors and prospective parents and children can look around safely.”

Matthew Maunder, relationship manager at NatWest, said: “The funding we provided for Graham and Charlotte has allowed them to continue the presence of a Welsh- medium nursery within Cardiff, as well as retain all of its existing employees.

“They made the most of lockdown.”