Spaceright in second deal in a year
Scots educational supplier on acquisition trail
Spaceright Europe, a manufacturer and supplier to the education sector, has acquired Millhouse Manufacturing Design after securing £1.55 million of follow-on funding from the Scottish Loan Fund (SLF).
Millhouse is a designer and manufacturer of toys and children’s furniture. Based in Lincolnshire and established over 30 years ago, the business specialises in producing contemporary wooden toys, furniture, and activity equipment for schools, nurseries and parents.
The purchase of Millhouse is Cumbernauld-based Spaceright’s second acquisition in a year using SLF finance after buying Newcastle-based Edtech in a £1.3m deal in May last year.
Spaceright continues to look at complementary bolt-on opportunities which will strengthen its offering. It said this latest acquisition will immediately broaden its product base.
With the support of SLF as its primary funder, Spaceright has sustained a strong period of growth, both organically and as a result of the product diversification following the integration of Edtech.
The addition of Millhouse will create a further platform from which the business can continue to drive revenue growth and helps consolidate the position of the enlarged enterprise as one of the UK’s main suppliers of products for children.
This latest investment by the SLF means the fund has committed more than £50m in 23 Scottish companies.
Alan Robertson, Investment Manager at Maven, said: “The management team at Spaceright has demonstrated its ability to make value enhancing acquisitions which has been possible through the funding made available by SLF.
“Spaceright is a great example of how businesses can benefit from the ongoing partnership and support of Maven and SLF to realise their growth ambitions.”
Commenting on the transaction, Steve Ashton, director at Spaceright, said: “We are grateful for the ongoing support of Maven and the SLF whose input throughout the transaction, alongside the funding, helped deliver this strategic acquisition.
“Early Years is a key market for Spaceright and the acquisition of Millhouse will enable us to continue to meet our customers growing demand for quality and innovative products.”
Scottish Enterprise’s investment arm, the Scottish Investment Bank, is the cornerstone investor in the Scottish Loan Fund.
Michelle Kinnard, investment director at Scottish Investment Bank, said: “We are delighted to see the Loan Fund continuing its support for ambitious Scottish growth companies. This investment from the Fund will enable Spaceright to undertake this strategic acquisition and continue along its growth journey and demonstrates the breadth of circumstances this pivotal Fund can be utilised for.”
Financial due diligence was conducted by Mazars, Legals by ICC Law for Spaceright and Morisons for SLF.