MSIF’s Mezzanine Investment Keeps Business Moving for Sovex

29th April 2008

A Wirral company which specialises in parcel handling machinery is undergoing major expansion after £400k cash injection from Merseyside Special Investment Fund’s £20m Mezzanine Fund.

Sovex Limited, based in Prenton, design, manufacture and install vehicle loading systems and conveyors to a UK and European customer base.

The company is one of the UK’s leading brands in the conveyor industry and counts blue chip organisations such as Royal Mail, Parcel Force Worldwide, Freemans Catalogue and UPS as clients.

MSIF’s investment will help to finance the company’s rapid growth and the continued development of the business. It is the second time MSIF has backed the company.

Sovex is run by directors David Lindfield and Malcolm Dooley who set up the company up in 2002 and have over 50 years’ industry experience between them.

Managing Director David Lindfield said: “The business has grown very quickly and we have won some major contracts. We need to expand significantly so that we can continue to provide a first-class service to our customers and have the capacity to take on new business.

“MSIF has been very supportive and this latest investment will provide us with the working capital we need to support our ongoing expansion plans. In addition to finance, MSIF also sourced us a highly experienced non executive director who will be a great asset and really help us through this rapid growth phase.”

Malcolm Jones investment director of MSIF’s Mezzanine Fund said: “Sovex is a thriving business which has built up a solid customer base and is run by a strong and experienced management team with a proven track record. We believe the business will continue to develop successfully and are pleased to be supporting the company.”

Turnover this year is predicted to reach £4m and it is thought this figure will rise to £6.5m over the next three years. The business currently employs 35 staff and expects to take on a further 10 during the next three years.

Legal advisors involved in the transaction were Mark O’Connor of O’Connors for Sovex and Jonathan Radcliffe of DLA for MSIF. Financial due diligence was undertaken by Langtons.

For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040 or Angela.White@msif.co.uk

Ends

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Picture shows Malcolm Jones (MSIF) with David Lindfield (Sovex)

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