YFM Equity Partners has made an undisclosed investment to support the management buyout of TEV Limited. Tariq Javaid of Garbutt + Elliott and Chris Blantern of Schofield Sweeney advised TEV on the transaction. Based in the UK, TEV is a maker of cooling, heating and refrigeration equipment.
YFM Equity Partners (“YFM”), the specialist private equity fund manager has backed the MBO of TEV Limited, one of the UK’s leading designers and manufacturers of cooling, heating and refrigeration equipment. TEV marks the third investment from the YFMEP 2016 Fund which closed at the end of last month.
TEV operates through two widely recognised brands, Marstair and Quartz, both of which offer quality, innovative, bespoke products which are unavailable in the mass market. Marstair supplies air conditioning and refrigeration equipment into a variety of end markets, such as retail, leisure, food manufacture and solutions for harsh climates. Quartz focuses on chilled water cooling solutions for commercial, residential and public sector applications. TEV manufactures in the UK and employs 56 staff at its headquarters in Brighouse, West Yorkshire.
Over the past few years, TEV has delivered significant revenue and profit growth and the management team of Tony Hammersley, Chris Chisman and James Carr-Smith, supported by Chairman Chris Brown, is now looking to invest in sales and product to accelerate the growth across all areas of the business.
Ian Waterfield, Investment Director at YFM said: “TEV has a strong reputation in this industry and has delivered consistent growth over the last few years. Its focus on energy efficiency in product design and the further tightening of environmental regulations provides a positive backdrop for the Company to continue to leverage its experience and reputation to harness niche opportunities in the UK and overseas.
“This is the third investment from YFM’s recently closed 2016 Fund, which was raised to invest in well-established UK businesses and to support management teams in delivering their ambitious growth plans.”
Tony Hammersley, Managing Director at TEV said: “YFM is known for successfully growing UK manufacturing business and so we are thrilled with both their investment and the expertise which they will provide. We are looking forward to working closely with YFM to enable us to deliver our growth plans and reach the Company’s true potential.”
TEV was advised by Tariq Javaid of Garbutt + Elliott and Chris Blantern of Schofield Sweeney. Legal advice to YFM was provided by Duncan Firman of Gordons LLP, financial due diligence was carried out by Jeff Gardner and Rob McCarthy of DSW Transaction Services, commercial due diligence by Robin Illingworth of Drystone Strategy Partners, and organisational due diligence and management assessment by Anna Cornwallis of Stratton HR. Santander Growth Capital team, led by Steve Harrison, provided debt finance. The vendors were advised by Oliver Hoffman of Mazars LLP and Sarah Walton of Weightmans LLP.
About YFM Equity Partners
YFM Equity Partners are leading independently owned private equity investors. With over 30 years of experience we seek to unlock value and growth potential by providing up to £10 million of equity to fuel the development of established business throughout the UK regions. We do this by helping our portfolio companies grow niche businesses, launch new initiatives, make transformative acquisitions and upgrade technologies and systems. Through our offices in Leeds, London, Manchester, Birmingham and Sheffield, we are dedicated to working alongside management teams to create long-term value for our investors, the companies we invest in and a positive economic impact for the communities in which we work. We advise and manage approaching £225 million of funds.
YFM Equity Partners conducts its investment business through its subsidiary YFM Private Equity Limited which is authorised and regulated by the Financial Conduct Authority (FRN: 122120).
For more information, please visit www.yfmep.com or follow us on Twitter @YFMEP.
TEV specialises in the design, manufacture and supply of Heating, Ventilation, Air Conditioning and Refrigeration (HVAC&R) products. It operates through two divisions, Quartz (Chilled Water Fan Coils, Chillers and Chilled Beams) and Marstair (air conditioning and refrigeration products).
TEV’s pedigree goes back to 1971 and is proud to manufacture in the UK. It has now occupied the present site at Brighouse in West Yorkshire for 45 years and today this facility employs more than 50 people.
A forward-thinking manufacturer, TEV’s product development continually focuses on the design of energy efficient products to incorporate the latest technological advances. This combined with excellent customer support and an established European base defines TEV as the air conditioning company for the next generation.
For more information on Marstair, Quartz or TEV Ltd please visit www.tevlimited.com.