BGF has backed medical devices company Medicina. Medicina is based in Bolton, UK and was founded by CEO Ken Harrison in 1992. Clients include the NHS and a number of leading homecare companies.
BGF, the independent company established to provide growth capital to the UK’s growing businesses, today announced that is has invested £6m in medical devices company Medicina.
Medicina is the UK market leader in the enteral feeding device sector. Medicina designs and distributes syringes, tubes and pumps which administer nutrition to a patient, both in hospital and at home. The business, which is based in Bolton, was founded by CEO Ken Harrison in 1992. Clients include the NHS and a number of leading homecare companies.
This investment was led by BGF’s Manchester team and is its third investment in the healthcare sector to date.
The investment will allow Medicina to capitalise on growth opportunities in the UK and international markets, as well as support new product development and provide for future acquisitions. Galvin Mould will join Medicina as Non-Executive Chairman bringing with him wide-ranging senior level experience in the healthcare sector.
Medicina is the fifth investment made by BGF in the North during 2013, taking the total invested in the year to £35m. Other businesses backed include Better Bathrooms, one of the UK’s leading bathroom retailers; VTL Group, the manufacturer of precision engineered parts for the automotive industry; Xercise4Less, the low cost gym group and York Mailing, the UK market leader in the specialist production of retail flyers, media inserts and quality catalogues. Collectively they employ over 1,200 people and represent a variety of industry sectors.
This is also the third healthcare sector investment for BGF, having backed Shuropody, the specialist footcare provider and retailer and Springfield Healthcare, Yorkshire and Humberside’s largest independent provider of domiciliary care.
Medicina was introduced to BGF by BTG Corporate Finance and the company is banked by RBS.
Ken Harrison, CEO of Medicina commented:
We see a number of exciting ways to grow the business both in the UK and overseas. As part of our growth strategy, it was important to find the right long term investor to partner with. BGF demonstrated a strong interest in the business and we believe that they are the right partner for us.”
Neil Inskip, Investment Manager at BGF, commented:
“We are delighted to be backing Ken, who has grown Medicina to be the UK market leader in its sector. BGF’s capital and support will help the Company take advantage of the significant opportunity to grow both domestically and overseas. BGF was established to provide long-term capital to ambitious companies and Medicina meets all of the criteria we look for when selecting investments.”
Andy Gregory, Regional Director for BGF’s Northern team, commented:
“Our Northern presence continues to go from strength to strength. We have now backed ten exciting companies across a huge range of sectors – from manufacturing and retail through to healthcare and hospitality. Having invested £35m this calendar year, we have continued to expand our team as we look to meet the strong demand from ambitious, growing companies who require development capital.”
Advisors on the deal:
FDD: Baker Tilly
Legal: Squire Sanders
Financial: BTG Corporate Finance
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Emily Weston, Equity Dynamics – 07825 326 442
Notes to editors:
Business Growth Fund has been established to help Britain’s growing businesses. Growth potential is the key criteria. BGF will invest between £2m and £10m per business in return for a minority equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for those growing companies that today do not have access to this source of capital. As such BGF hopes to be a catalyst for growth among smaller UK companies.
BGF is an independent company with capital of up to £2.5 billion, backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS, and Standard Chartered. BGF is managed completely autonomously with an independent management team.
BGF Key facts and figures:
• 90 people at 7 offices across six UK regions
• Over £200 million of growth capital invested in 40 companies from 17 sectors
• 5,500+ people currently employed by BGF backed companies
• More than money for investee businesses, for example BGF has placed 32 highly experienced non-executive chairman and non-executives.