£1.4m Investment Package Helps Aerogistics Fly

21st January 2008

Merseyside Special Investment Fund has invested £1.4m to support the expansion of a Liverpool-based aerospace supply chain management company.

Aerogistics provides supply chain management and surface treatments to the aerospace industry and has a customer base that includes industry giants GE Aviation, Airbus, Boeing and Rolls Royce.

The company was formed in 2003 as a supply management company and in 2005 acquired King and Fowler, a 120 year old Liverpool aerospace manufacturing business which specialises in surface treatment and inspection processes. This acquisition enabled Aerogistics to provide customers with a full low cost service and also strengthened the Aerogistics brand within the sector.

Aerogistics recently opened a new facility in Poland, King and Fowler Polska, which acts as a logistics and project management hub for its Eastern European supply chain.

The MSIF investment deal was led by Matt Allen, investment director of MSIF’s £40m Venture Fund and was assisted by investment manager Tim Scott. The funding will be used to provide a partial exit to two non-active shareholders and support the expansion of Aerogistics Liverpool headquarters.

MSIF’s investment is in addition to ongoing support from Barclays and grant funding of £1m from the NWDA in April last year and £300k from Business Liverpool. Part of this funding will be used to help the company relocate to state-of-the art premises as part of its future expansion plans.

Aerogistics is run by directors Tom Dawes, Alan Bold, Nick Bell and chairman, David Bundred.

Tom Dawes, Managing Director of Aerogistics said: “The investment means we can strengthen the management team and gives us the working capital to significantly develop the company. We will considerably grow the breadth and depth of expertise at our Liverpool headquarters by teaming up with knowledge based partners and investing in new value-adding technologies.

“MSIF has also been very supportive in the recruitment and development of our executive team and sourced us a proven FD and sector experienced chairman, both of whom will be a great asset to the team.”

“We now want to build Aerogistics into a global market leader and put Liverpool on the map in this industry. In addition to our growth in Liverpool we also want to build on the successful introduction of our Polish operation, the only independent aerospace treatment facility in Eastern Europe, and replicate this in India and Mexico which will enable us to penetrate new markets abroad.”

Matt Allen, investment director of MSIF’s Venture Fund said: “Tom is a true entrepreneur and he has great vision and drive. We are delighted to support the company and believe it has excellent growth potential in an increasing global marketplace.”

Mike Taylor, chief executive of BusinessLiverpool, said: “The expansion of Aerogistics will mean securing existing jobs and the creation of many new ones and BusinessLiverpool’s money will help with their relocation plans. Aerogistics is not only forward looking but outward looking and the company’s continuing moves into global markets is not only exciting but augurs well for Liverpool’s growing reputation as a place in which business can be done.”

Aerogistics employs 175 staff and expects to create a further 70 jobs over the next two years.

Legal advisors involved in the transaction were Craig Scott and Matt Noon of Halliwells (MSIF) and Ian Vicary of Weightmans (Management) Rupert Gill of Brabners Chaffe Street (Vendors). Corporate finance advice was provided by Brabners Chaffe Street. Financial due diligence was undertaken by Langtons and CBG conducted insurance due diligence. Management due diligence was conducted by Ashley Hoyle.

Ends

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Photo shows L-R Alan Bold (Aerogistics) Tim Scott (MSIF) Tom Dawes (Aerogistcs) Matt Allen (MSIF)

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