The management buyout of TEV, one of the UK’s leading designers and manufacturers of cooling, heating and refrigeration equipment, has been backed by specialist private equity fund manager YFM Equity Partners.
TEV is best known via its two main brands Marstair and Quartz, both of which offer innovative and bespoke products which are unavailable in the mass market.
Marstair supplies air conditioning and refrigeration equipment into a number 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 from it base in Brighouse, West Yorkshire. It employs 56 staff and its 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.
Investment Director at YFM Ian Waterfield 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.”
Managing Director at TEV Tony Hammersley 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, 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 and Sarah Walton of Weightmans.
(picture above shows, from left to right, Ian Waterfield, YFM; James Carr-Smith, TEV; Tony Hammersley, TEV; Chris Chisman, TEV; and, Tariq Javaid, Garbutt + Elliott)