In April 2018, Tufwell was sold to Brownhill Investments Limited.
Investor Club members received EIS on their initial subscription and
generated a return on exit on their net investment of circa 3x
A Chelverton Investor Club Investment
Crawley, Sussex, UK
Buy-in management buy-out (BIMBO)
How much did Chelverton Investor Club Members invest: £1.2m
Tufwell process and install glass for internal commercial applications, for customers throughout London and the South East, with a focus on rapid turnaround of low volumes to meet demanding customer requirements.
Why did Chelverton Investor Club Members Invest?
The business was a non-core division of a corporate not otherwise engaged in the Glass market. Despite this lack of attention, the business had been consistently profitable throughout the recession and, with a stand-alone operation and discrete management team, who were ambitious to grow the business, the rationale to acquire the company was compelling.
How did we come across the company?
We were introduced to the opportunity through a long-standing Corporate Finance contact, and our Unquoted Equity Team worked quickly with him to secure exclusivity in a competitive sale process.
Working on the deal with a Trade Partner / co-investor meant we could leverage consolidated buying gains and other operational economies of scale, as well as share know-how between the complementary businesses.
Working alongside the Trade Partner, Tufwell is well placed to broaden both its geographic reach and product offering.
The ‘Supply & Fit’ element of the business was allowed to wither under previous ownership and it’s anticipated this higher margin business will also be recovered under more focused management.