Northern merger and acquisition market is strongest it has been for years

The northern merger and acquisition market is the strongest it has been for years, a top private equity firm says.

NVM Private Equity (NVM), which operates offices in Newcastle, has reported a successful 12 months, with particularly strong activity across the North.

In 2013, NVM announced that it had £100 million to invest in UK businesses. Over the past 12 months, over £24 million has been invested from this pot of capital by NVM’s Newcastle and Manchester offices into five growing businesses.

Firstly, in June 2013 Stockton-on-Tees based Cleveland Biotech received £3 million of investment capital fromNVM to take advantage of the growing demand for its environmentally friendly biological waste treatment products.

A month later, £7 million was invested in the management buy-out of Nelson based upholstered furniture manufacturer, Buoyant Upholstery.

Early in 2014, It’s All Good, a Gateshead manufacturer of premium tortilla chips and other snacks, received £3.5 million of development capital to help bring its products to the forefront of the UK grocery industry.

Finally this month, NVM’s Northern investment team has supported two more management buy-outs. North West creative events agency, The fresh Group, received £5.7 million, and Aberdeen based oil and gas technology business, Arnlea, £5 million.

Currently, 30% of NVM’s UK investee companies are headquartered in the North, across a wide range of sectors.

The NVM investment team has responded to an increase in activity across the North by opening a new Manchester office, and with the appointments of Andy Leach, Liam May and Karl Cockwill to help boost investment opportunities and manage NVM’s portfolio.

Mauro Biagioni, director of NVM for the North East and Yorkshire commented: “I have been part of the NVMteam for 10 years and I believe this is the strongest the Northern M&A market has been for a long time.

“We have seen manufacturing reshoring back to the UK, as consumers opt for quality over cheap products and services. Entrepreneurialism and innovation is also increasingly being supported by both UK finance and Government.

“I believe this positive growth can only continue, especially if you look at the success NVM and its portfolio has had over the last 12 months.”