Spaceright makes 2nd acquisition in a year with ongoing support of SLF
Spaceright, a leading manufacturer and supplier of products for the educational sector, is gearing up for further expansion following its acquisition of Millhouse Manufacturing Design after securing an additional £1.55 million of follow-on funding from the Scottish Loan Fund.
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, quality wooden toys, furniture, and activity equipment for schools, nurseries and parents.
The purchase of Millhouse is Spaceright’s second acquisition in a year utilising SLF finance having acquired Newcastle-based Edtech in a £1.3 million deal in May 2014. Spaceright continues to look at complementary bolt-on opportunities which will strengthen its offering and today’s acquisition will immediately broaden Spaceright’s product base, enhancing its comprehensive and innovative range of educational solutions which are targeted at the Early Years market.
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 successful 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 across the Early Years learning product categories.
This latest investment by the SLF sees the Fund having committed over £50 million in 23 successful Scottish companies.
Alan Robertson, Investment Manager at Maven, said: “Spaceright’s acquisition of Millhouse further enhances its position as a leading supplier of Early Years products to the market. 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.”