Business, News | Rhys Williams | Published: 11:38, Thursday April 25th, 2019.
Last updated: 13:32, Thursday April 25th, 2019
A company based in Bedwas has received a multimillion pound equity investment from the Development Bank of Wales as part of a management buy-out (MBO).
Spotnails Ltd is a long-standing independent distributor of tools and fastener products and has been trading for more than 60 years.
As part of the investment, the Development Bank of Wales added experienced finance director John Jeffreys to the management team, which consists of Sales Manager Jason Quaife and General Manager Craig Bates.
Mr Quaife said: “I’ve been with Spotnails now for 12 years and this is Craig’s 26th year in the company. I have a sales background and Craig has the tooling background from his apprenticeship here.
“The management buy-out is a very attractive opportunity for us both and it gives us a great advantage as most of the technical experts in the industry have retired or are about to retire.”
He added: “We have huge ambitions for the company and the support from the Development Bank of Wales is crucial to achieving these.
“We are very much a belt-and-braces industry. We are securing relationships and working with several manufacturers with strong brands to sell into the UK.
“We want to become the largest independent distributor of these types of products with our own branded product range too.”
All 24 jobs within the company were protected in the buy-out, while plans to introduce new products are likely to provide more jobs in the future.
Senior Investment Executive Stephen Galvin, who led the transaction with Investment Executive Ruby Harcombe, said: “The fund provides a successful management buy-out and an exit route for the vendor shareholders.
“Jason Quaife and Craig Bates have been working in the business for a number of years in anticipation of the MBO, pushing the company forward by dealing with new suppliers, increasing sales and by bringing in new business within timber frame manufacturing.
“We’ve also strengthened the team further with the introduction of experienced Finance Director John Jeffreys. Our endorsement means that Spotnails boasts a highly experienced management team with strong ambitions and a focus on growth.”
Legal adviser Gemma Davies, of Hugh James solicitors, said: “It has been a pleasure to work with the Spotnails management team and Development Bank of Wales on this deal. The MBO is the culmination of many years’ hard work by Jason and Craig and to help them realise their long-term ambition of becoming owners of Spotnails was a privilege.
“We look forward to seeing the company go from strength to strength under the guidance of its new owners.”