UK generalist investor NVM Private Equity has invested 6 million pounds ($9.6 million) to support the management buyout of Volumatic from Halma. Volumatic is a UK-based provider of intelligent cash handling products to the UK and international markets. Its customers include UK retailers, supermarket chains, leisure operators and banks including Wilkinson, Tesco, WH Smith, Lloyds TSB, RBS, Nationwide, McDonalds, Madame Tussauds and Chelsea FC.
NVM Private Equity (NVM) has invested 6 million pounds ($9.6 million) to support the management buy-out of Volumatic Limited from Halma plc. Volumatic is the UK’s leading provider of intelligent cash handling products to the UK and international markets.
Volumatic was established in 1972 to pioneer retail security products. 40 years on and the Coventry based business is a leading force in its market; with a widely recognised brand and long-established, blue-chip client base. Its customers include some of the best-known UK retailers, supermarket chains, leisure operators and banks including Wilkinson, Tesco, WH Smith, Lloyds TSB, RBS, Nationwide, McDonalds, Madame Tussauds and Chelsea FC. Volumatic also has a growing reputation across Europe and in the USA.
Volumatic designs, manufactures and services a wide array of products that help companies to count cash, detect forged notes and store cash securely. In 2008 they launched a new product, CounterCache Intelligent (CCi) which combines counting, anti-forgery, storage and software suites for integration with retailer’s systems. There is currently no directly comparable product in the market and management believe it has huge market potential. In 2011 CCi accounted for 45% of Volumatic’s total revenue.
Cash transactions remain the dominant payment method across the UK and Europe. Volumatic’s products are used globally to count and protect over $1 billion per day.
James Arrowsmith, Director of NVM Private Equity: “Volumatic is led by a talented and dedicated management team. They have a deep understanding of their market and customer requirements. This is a highly innovative company with new and existing product development being a key driver for its growth. The funding from NVM will ensure that they continue to be at the forefront of developments in the sector, as well as allowing them to broaden their footprint and capability.”
Colin Amos, Managing Director of Volumatic Limited: “The buy-out will allow us to take advantage of significant growth opportunities. We want to develop our product range, increase penetration in existing markets and expand overseas. Volumatic has several new product innovations and improvements currently under development – and we look forward to working with NVM to bring these to market.”
Halma plc: Paul Teuten and Colin Weston of Duff & Phelps Securities acted as financial advisers and David Day and Stuart Hohnen of CMS Cameron McKenna acted as legal advisers.
Management (Volumatic): Mark Beardmore of DLA Piper acted as legal adviser.
NVM Private Equity: Ian Piggin, Gareth Baker, Fayaz Patel and Graham Spalding of Wragge & Co LLP acted as legal advisers. Iain Lownes and Steve McMullan of BTG Corporate Finance provided corporate finance advice. Graham Elsworth and David Billington of BDO provided financial due diligence. Tom Raymond of Armstrong TS provided commercial due diligence.
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Notes to editors:
NVM Private Equity Limited (NVM) is independently owned with over 27 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing over £200 million of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2 million and £10 million in each transaction.