Bregal Freshstream today announces the sale of Intergas, the leading Dutch manufacturer of space and water heating equipment to Rheem, the US headquartered provider of gas furnaces, heat pumps, air conditioners, air handlers, indoor air quality products, gas and electric water heaters.

The sale is Bregal Freshstream’s first full exit and third significant liquidity event since launching its maiden €600m fund in September 2015.

Intergas, headquartered in Coevorden in the Netherlands, is able to trace its roots back to 1939 and is a pioneer in the field of heating and hot-water technology. The company is the leader in the Dutch boiler market, using its expertise to increase energy efficiency and reliability as well as reducing emissions and energy bills. Intergas is expanding both in Europe and North America, with growing subsidiaries in the United Kingdom, USA and Canada.

Bregal Freshstream invested in Intergas towards the end of 2017, backing the team to continue to drive growth and capitalising on its market leading position within the industry. Under Bregal Freshstream’s co-ownership, Intergas has grown every year.

Rheem’s investment in Intergas is a pivotal step in the company’s strategy to become a global leader in water heating.

Commenting on its first exit, Bregal Freshstream’s Managing Partner Patrick Smulders said:
“We’ve really enjoyed working with Janno and the team at Intergas alongside our co-investor since our original investment in late 2017. We are very proud of the progress that Intergas has made over the last few years, reinforcing its leading position in the Netherlands and further building its international distribution network. We look forward to watching its progress in the coming years. We are extremely pleased with the level of return we have generated for our investors.”

Janno de Haas, CEO at Intergas, commented:
“We are very grateful to have had Bregal Freshstream on board and have appreciated all the support they’ve given us. The business has grown significantly since their investment and we see encouraging potential for us to build on the strong momentum we have established as we go forward into this exciting new chapter.”

Chris Peel, CEO at Rheem, commented:
“We are excited to welcome Intergas to the Rheem family. Intergas is renowned for its state of the art boiler technology and has an exciting pipeline of innovative heating and hot water products that will fit perfectly into Rheem’s global product portfolio. Following Bregal Freshstream’s tenure as an investor, we are delighted to work with them on this transition at such an exciting time in their growth story.”

LDC has reached an agreement to sell fast-growing holiday park operator, Away Resorts, to Bregal Freshstream. LDC will retain a minority shareholding as part of the deal.

Founded 10 years ago by leisure entrepreneur Carl Castledine, Away Resorts now operates six leading resorts in prime UK destinations, including Tattershall Lakes in Lincolnshire and Whitecliff Bay on the Isle of Wight, hosting almost 200,000 holiday-makers each year.

LDC invested in Away Resorts in 2015 to support the management team’s expansion plans and the development of its existing sites. The business subsequently acquired Mersea Island Holiday Park in Essex later that year, followed by Sandy Balls in the New Forest in 2017, with additional backing from LDC. Over the past four years, the business has invested more than £45 million in existing sites, adding state-of-the-art entertainment complexes, new pitches and facilities. Revenue has increased to £63 million in 2018 and employee numbers have grown from 450 to 950.

Following the transaction, with the backing of Bregal Freshstream and its other shareholders, Away Resorts is planning a further £25 million of investment across the portfolio in the coming years.

Away Resorts is the tenth investment by Bregal Freshstream since the launch of its maiden, €600 million fund, in 2015, and joins its other UK investments in handbag retailer Radley, specialist contractors Taziker Industrial and M&J Evans and retail pharmacy chain Juno Health.

The transaction is subject to receipt of required FCA approval. The terms of the transaction have not been disclosed.

Carl Castledine, CEO of Away Resorts, said:
“LDC has been the perfect partner for us over the past four years, providing not only the capital to expand but also the operational and strategic support to help us scale the business. They understood our vision from the start and backed the team to deliver it. We’re delighted they’re continuing to support our growth plans.

“Bringing Bregal Freshstream on board takes us on the next stage of our journey in support of our long-term vision to become a £1 billion operator with a broad portfolio of well-invested, market-leading UK holiday resorts.”

Richard Whitwell, Head of Midlands at LDC, said:
“We backed Carl and the team to realise a bold vision for the group back in 2015 based on significant investment in, and expansion of its portfolio. The success of the business is testament to their passion, drive and commitment and we’re proud to have played our part in enabling their success.”

He added: “With demand for British holidays increasing, Away Resorts is ideally placed to continue growing its position in the market, with a highly capable management team, a distinct proposition, a portfolio of prime sites and significant capital backing from LDC and Bregal Freshstream.”

Commenting on the investment, Giles Marshall, Director at Bregal Freshstream said:
“We are delighted to be supporting the Away Resorts team on the next stage of their journey. Since founding the business in 2008, Away Resorts has developed into a highly regarded and innovative holiday operator, well positioned to capitalise on the strong momentum they have generated at the cutting edge of the industry. We are very excited to be working with Carl and the rest of the team to further accelerate the growth of the business.”

LDC was advised by Gowling WLG, Freeths LLP, DC Advisory, PWC and CIL.

Bregal Freshstream was advised by Deloitte Corporate Finance, Clearwater and Willkie Farr & Gallagher LLP.

Bregal Freshstream today announces its investment in M&J Evans Construction Ltd (“M&J Evans” or “the business”), a groundworks and civil engineering company based in the Midlands which offers a range of civil engineering, foundations and external works to the UK house building sector.

Founded in 2003 by John Evans and headquartered in Walsall, M&J Evans has grown rapidly to become one of the largest ground engineering business in the Midlands.

The business has an outstanding reputation for the quality of service and works it provides to its customers which include Barratt Developments, Redrow, Taylor Wimpey, Persimmon and Bellway.

The business currently employs just over 650 direct and sub contract staff and has a strong financial track record, increasing revenue from £48million in 2014 to £100million in 2017.

M&J Evans plans to continue its rapid growth in its core Midlands market as well as expand into other regions of the UK with additional support and investment from Freshstream.

M&J Evans is the ninth investment by Bregal Freshstream since the launch of its maiden, €600m fund in 2015 and joins its other UK investments in handbag brand Radley, specialist contractor Taziker and retail pharmacy chain Juno Health.

The terms of the transaction have not been disclosed.

Commenting on the investment, Giles Marshall, Director at Bregal Freshstream, said:
“We are delighted to be supporting the M&J Evans team on the next stage of their journey. They have an excellent customer base alongside a strong track record of delivery that has driven customer loyalty. The business has strong existing relationships with many of the top housebuilders in the UK and we look forward to working with the team to develop these and other relationships going forward.”

John Evans, Managing Director of M&J Evans commented:
“Bregal Freshstream’s support and advice will enable us to accelerate our ambitious growth strategy, both in the Midlands and beyond. Their track record of working with high growth companies such as ours means that, as well as financial support, we will benefit from their experience and strategic guidance. We are thrilled to be working with them and very excited about the future.”

TrueNoord, the Bregal Freshstream-backed independent aircraft leasing business specialising in the regional aircraft market, has secured new investment from existing and new investors, bringing total equity available to TrueNoord to nearly US$400m to expand its aircraft portfolio and partially refinance its existing fleet as it embarks upon the next phase of growth. This complements a senior secured debt facility of US$ 500m which was arranged in July.

Following the equity and debt raise, TrueNoord is targeting an acceleration of its growth plans with a strategy to substantially grow its existing fleet of 30 Embraer, Bombardier and ATR aircraft within the next five years, and building on its strong presence in Europe through further expansion in Asia, Africa and The Americas. New equity was raised from its original investors, Bregal Freshstream, BlackRock and Aberdeen Standard, alongside further investment from a number of new investors including Capital Dynamics, Euro Private Equity and Flandrin, among others. The US$500m secured debt facility was arranged and fully underwritten by Morgan Stanley, NORD/LB Norddeutsche Landesbank and Barclays.

Established in 2002 by CEO Anne-Bart Tieleman as GA-Finance, the Group rebranded and launched as TrueNoord in June 2016. With offices in London, Dublin and Amsterdam, TrueNoord is a specialist solely focused on regional aircraft in the 50-150 seat class sector providing lease and lease management services to operators and investors in this sector. The regional aircraft sector represents a significant portion of the global aviation industry with approximately 50% of all passenger travel accounted for by journeys under 300 nautical miles. This is particularly the case in South East Asia and Latin America where growing populations and infrastructure challenges are driving demand for local air travel.

TrueNoord focuses on the acquisition of relatively young aircraft with leases attached to stable and well-positioned airlines. The company is well-placed to take advantage of the inherent growth potential of the regional aircraft leasing market and, since launching, has developed an extensive network of airline, technical, financial and OEM contacts that is, in the specialist regional aircraft lessor market, second only to Denmark-based lessor Nordic Aviation Capital (NAC) in terms of scale.

TrueNoord received the Regional Aircraft Lessor of the Year Award at the 2017 Global Transport Finance Annual Awards.

Anne Bart Tieleman, CEO of TrueNoord, commented:
“The support from such a blue-chip roster of equity and financing partners further augments the strong and globally renowned circle of investors and financiers that will facilitate TrueNoord’s dynamic progression in the coming years. For TrueNoord, this is the next important step in our business development and allows us to be more proactive in pursuing regional aircraft leasing transactions, as we seek to build on the strong momentum, we have generated in recent years to become one of the mainstream players in this sector.”

Bregal Freshstream Chief Investment Officer Rayhan Davis added:
“Since our original investment in the business, TrueNoord has gone from strength to strength, delivering on the Group’s expansion plans in the regional aircraft sector. The business is fully committed to expanding its fleet of Embraer, Bombardier and ATR aircraft not only in Europe but also in Asia, Africa, North America and Latin America. The equity investors’ support and the new debt facility in place for the business supports management’s ambitious growth plans.”

Bregal Freshstream today announces its investment in TrueNoord, an independent aircraft leasing business that specialises in the regional aircraft market. Funds and accounts managed by Blackrock will be co-investing in the transaction alongside Bregal Freshstream.

Established in 2002 by CEO Anne-Bart Tieleman as GA-Finance, the Group with Bregal Freshstream’s support rebranded and launched as TrueNoord in June 2016. It provides financing solutions for regional aircraft and aviation projects globally.

The regional aviation sector represents a significant portion of the global aviation industry with approximately 50% of all passenger travel accounted for by journeys under 300 nautical miles. This is particularly the case in South East Asia and Latin America where growing populations and infrastructure challenges are driving demand for local air travel.

TrueNoord is well-placed to take advantage of the inherent growth potential of the regional aircraft leasing market and, since launching 12 years ago, has developed an extensive network of airline, technical, financial and OEM contacts.

Bregal Freshstream’s investment will allow the company to build upon its existing foundations, growing its fleet and diversifying through international expansion.

Anne Bart Tieleman, CEO and Founding Partner of TrueNoord, commented:
“The regional aviation sector is a highly specialised subsector of the wider aircraft leasing industry and one that we have worked hard over the past 12 years to establish a strong presence within. With Freshstream’s backing, we feel that we can build on the strong momentum we have generated to date as we look to expand into key growth markets such as Latin America and South East Asia where demand for regional aircraft is booming.”

Commenting on the investment, Bregal Freshstream Chief Investment Officer Rayhan Davis said:
“TrueNoord is well placed to see significant growth in a rapidly expanding and lucrative market. The company’s management team have a strong financial understanding of the dynamics shaping the market, first rate industry relationships and a track record of success. We are very excited about working with them.”

Bregal Freshstream today announces a minority investment in Euro-Caps, the world’s largest private label manufacturer of Nespresso® compatible coffee capsules.

Euro-Caps has established itself as the undisputed leader in the Nespresso® compatible coffee capsule market thanks to its manufacturing technology, which utilises fully automated production lines, a well invested product lab and R&D process plus a dedicated and experienced Coffee Quality Team who oversee its grinding and unique blend creation operations. It has also recently launched a Dolce Gusto® compatible private label product.

Euro-Caps operates a very flexible and highly scalable platform that is able to combine outstanding expertise in coffee, capsules and packaging, with products primarily sold through food retailers but also through partnerships with coffee roasters and brands which provides complementary opportunities for growth.

The single serve coffee segment is the fastest growing subsector of the global coffee market and is anticipated to be worth just over €18bn by 2019 due in part to the “premiumisation” of the coffee market with coffee drinkers demanding increasingly higher quality products.

This deal is the 6th investment by Bregal Freshstream since the launch of its first fund in 2015. Euro-Caps is also Bregal Freshstream’s third investment in the Netherlands following its 2016 investments in Verwater, a global industrial and petrochemical contractor, and TrueNoord, a regional aircraft leasing business.

As part of the transaction, Euro-Caps management team will retain a significant stake in the business and will continue to oversee the Group’s ongoing development.

Commenting on the investment, Pascal Keutgens, Partner at Bregal Freshstream, said:
“We are delighted to be working with the Euro-Caps team during this next stage of its journey. We believe that their established and award-winning product, combined with the Group’s market-leading technology, means that it is uniquely well positioned to benefit from the increasing demand for premium coffee and we look forward to helping them deliver further sustainable, long-term growth.”

Nils Clement, CEO and Co-founder of Euro-Caps, commented:
“This is a very exciting time for us and we are thrilled to be partnering with such a supportive and experienced team. Bregal Freshstream bring with them more than just investment capital and, as well as their experience of helping to build and grow entrepreneurial businesses such as ours, we were also attracted by the fact that they are backed by a family investment fund and are therefore able to adopt a longer-term approach to our business.”

Bregal Freshstream today announces it has acquired a majority stake in Verwater (“the Group”), a global industrial and petrochemical contractor specialising in storage tank maintenance, from Infestos, a privately held Dutch investment firm.

Founded in 1922 and headquartered in Rotterdam, Verwater primarily operates in the Amsterdam-Rotterdam-Antwerp region but has global capabilities supported by three international sales offices in Oman, USA and Singapore, working with a blue chip client base including ExxonMobil, Shell, Total, Vopak, Odfjell, Shin Etsu and Dupont.

Verwater is a “one-stop shop” for storage tanks and related infrastructure, providing a range of services including oil tank maintenance, construction and repair as well electrical & instrumentation and engineering & automation services via its Verwater Industrial Services business.

The Group is the market leader in tank related services in North-West Europe, home to Europe’s largest refining and petrochemical hub and the second largest petrochemical cluster in the world. The tank storage industry is governed by strict health and safety and regulatory requirements with Verwater’s specialised equipment and range of sophisticated services, particularly its renowned tank jacking capabilities, consequently in high demand.

The Netherlands is one of the key strategic areas of focus for Bregal Freshstream. Following the transaction, Bregal Freshstream will hold a majority stake in the business alongside Infestos, Verwater’s management team, the Verwater family and others.

Commenting on the investment, Pascal Keutgens, partner at Bregal Freshstream, said:
“Verwater’s focus on health and safety and their understanding of the regulatory backdrop means they are seen as a highly prized partner by a host of blue chip companies for whom safety is the number one priority. We see great potential for the business to expand internationally and increase the range of products and services it offers and we are very excited about working with both Verwater’s management team and Infestos.”

CEO of Verwater, Filip De Wilde, commented:
“In recent years we have delivered a strong operational and financial turnaround by realigning our strategy and investing to strengthen our business and sharpen our operational activities. Consequently, we now have a solid platform on which to build thanks to our market leading position, strong recurring sales and proven international rollout strategy. Bregal Freshstream’s investment will help us to service our existing customers even better while growing into adjacent markets and geographies and I am very much looking forward to working with them on this exciting new stage of our development.”

Third investment since launching its €600m fund in September 2015
Bregal Freshstream today announces it has acquired Radley, the well-known British handbag and accessories brand.

Founded in 1998, Radley is now the leading British handbag and accessories brand in the rapidly growing affordable luxury market with a multi-channel business and established distribution network covering the UK, Europe and Asia. Since 2007, the business has been majority owned by Exponent Private Equity.

Following the deal, veteran retailer Don McCarthy will join the business as Chairman. Don is an entrepreneur with over 40 years’ experience in investing, operating and controlling many high street names. He has previously held the position of Executive Chairman at House of Fraser and Chairman of Aurum Holdings which includes Watches of Switzerland, Mappin & Webb and Goldsmiths. As CEO and Chairman of Rubicon Retail Ltd, he established a multi-branded footwear and fashion organisation before selling the whole company in 2006.

Don will work with CEO Justin Stead who has a proven and very successful track record of building shareholder value for businesses on a global basis. The Group’s recent progress has seen Radley establish a significant presence in the UK with 33 stores and eight concessions in key cities and retail centres alongside a presence in 33 John Lewis stores, 58 branches of House of Fraser and over 200 other department stores and independent shops nationwide. The Group also has a strong eCommerce offering with dedicated websites for the UK, German and Japanese markets.

The business generates just over 10% of its total sales outside of the UK, predominantly via distributors in Germany and Japan and, of the c90% UK sales, some 10-15% are to non-British customers visiting its UK stores.

Radley is ideally positioned in the affordable luxury segment of the global luxury goods market, which was worth £161bn in 2014, with a major presence in the handbag segment, the fastest growing segment of this market. The UK handbag market alone was worth £1.6bn in 2015 and has grown at a CAGR of 7% since 2011.

This investment from Bregal Freshstream will look to further grow Radley’s business both in the UK and overseas, with significant potential to build upon the brand’s international appeal.

This deal marks the third investment by Bregal Freshstream following its successful investments in infrastructure contractor Taziker Industrial in March 2016 and Belgian self-service restaurant chain Lunch Garden in December 2015.

Commenting on the investment, Freshstream’s Managing Partner Patrick Smulders said “Radley is a well-known and cherished British brand with beautiful products, an excellent management team and a strong financial track record. We see significant opportunity for the Group to build on its international appeal and are delighted to have the combination of Don and Justin working together again – they have an outstanding track record of success. Alongside the existing Radley team, we see this as an exciting new stage of the company’s development.”

CEO of Radley, Justin Stead commented “We have enjoyed a strong period of growth in recent years and see huge potential for the business to build on the momentum we have generated to date. We have a loyal, and growing, customer base plus a very clear vision and strategic plan to grow the business that will see us pursue further UK expansion and international growth. The Freshstream team really understands our brand, our culture and our plans for the future so I am really looking forward to working with both them and Don to make these plans a reality.”

Don McCarthy, incoming Chairman, added “I am delighted to be joining such a well-known brand at such an exciting stage of its development. Justin and his team have worked hard to build Radley into a brand that is synonymous with high quality design and workmanship so, with Freshstream’s backing, I am confident that we can all help the Group to capitalise on its enormous potential.”

Second deal since launching its €600m fund in September 2015

Bregal Freshstream has invested in Taziker Industrial (“Taziker”), a multi-discipline specialist contractor providing protective coatings, structural refurbishments and minor civils to the rail, road, marine and utilities industries.

A family-backed business headquartered in Bolton, Taziker evolved out of a painting company set up by Tom Taziker in 1969 and today delivers its core services of steelwork, surface preparation and scaffolding across a variety of landmark structures, bridges and industrial complexes.

It now employs over 580 people across the UK and has provided bridge strengthening and maintenance on sites such as the Tay Bridge in Dundee and the Royal Albert Bridge in Cornwall as well as surface preparation on infrastructure assets such as the Jodrell Bank Telescope in Cheshire.

Today, almost three quarters of Taziker’s business is derived from the rail industry thanks to the Group’s status as a Principal Contractor for Network Rail. Taziker has also recently secured a framework agreement for London Underground’s Station Works and Improvement Programme (“SWIP”).

As a result of Bregal Freshstream’s investment in the business, Taziker will now look to accelerate its growth plans, further developing its people and services with the aim of continuing to be a leading choice in structural repair and refurbishment in the UK.

This deal marks the second investment by Bregal Freshstream, following the successful launch of its €600m maiden fund in 2015, having secured a majority stake in Belgian self-service restaurant chain Lunch Garden in December 2015.

The investment was led by Rayhan Davis, Giles Marshall and Julien Millet at Bregal Freshstream.

Commenting on the investment, Chief Investment Officer, Rayhan Davis said:

“Taziker Industrial is a fantastic example of a thriving and entrepreneurial British business that has established itself in a highly technical niche. They have a skilled management team, a proven business model and significant growth potential given the enormous investment that is being made in the UK’s infrastructure assets. We hope to build on the Group’s fantastic foundations and are tremendously excited about the future.”

Graham Moor, Managing Director at Taziker Industrial, commented:

“Having helped build up this business, I am delighted to start this new chapter with Bregal Freshstream. We have worked hard to establish Taziker Industrial as a leading specialist in the market, providing technical expertise in a highly regulated, critical operating environment and this investment will allow us to achieve the next stage in our development, taking Taziker Industrial into new markets and expanding upon our core service offering.”

First deal since launching its €600m fund in September

Bregal Freshstream today announces that it has agreed to acquire Lunch Garden, the leading Belgian self-service restaurant chain, from a consortium of investors led by H2 Equity Partners. The investment is Bregal Freshstream’s first since launching its maiden €600m fund in September 2015 and will see it take a majority stake in Lunch Garden.

Established in 1966 and with over 70 branches across Belgium, Lunch Garden is an iconic restaurant brand that offers customers high quality, traditional Belgian cuisine, complemented by popular international dishes, with an average meal price of €11. Located in prime, high-footfall areas, all sites are profitable with Lunch Garden commanding a growing market share within the Belgian restaurant market.

With the appointment of a new management team in 2010 and the implementation of a refreshed restaurant concept, Lunch Garden has delivered a robust period of growth in recent years following over €50m of investment from the prior owners into new store openings and a renewal of the existing restaurant base.

As a result of Bregal Freshstream’s investment in the business, Lunch Garden will now look to accelerate its growth plans both organically and by increasing its restaurant roll out programme.
Bregal Freshstream’s maiden fund of €600m is focused on mid-market investments in growth businesses across a wide variety of sectors, with a particular geographic focus on the UK and Benelux markets.

The investment was led by Rayhan Davis and Irmo Holslag at Bregal Freshstream.

Commenting on its first acquisition, Managing Partner Patrick Smulders said:

“This is the first step in Bregal Freshstream’s investment journey and we are tremendously excited about our chosen partner. Lunch Garden fits perfectly into the investment criteria we identified, with a successful operational model, upside potential and significant growth opportunities. Lunch Garden has been very well invested by its prior owners and this backdrop, plus the talented, entrepreneurial management team that is already in place, makes the company an ideal first investment for our fund.”

Annick van Overstraeten, Lunch Garden General Manager, commented:

“We have worked hard in the past five years to grow Lunch Garden’s presence in the market and look forward to this new stage in the company’s development. The business is a much loved and well established brand within the Belgian marketplace and I see great potential for us to build on the strong momentum we have generated to date. Bregal Freshstream is the ideal partner to help us realise our growth ambitions and we are very much looking forward to working with them.”