Onwards and upwards!
At the centre of this deal is an equity funding package from UK Steel Enterprise (“UKSE”), the investment subsidiary of Tata Steel.
Tekfloor is now established as the UK’s leading independent distributor of screed and associated products to the construction sector. Under the stewardship of owners Steve Foster and Adam Wiszniewski, the company has delivered spectacular growth with turnover set to exceed £20m in 2019.
The new funds will enable Tekfloor to augment its success to date and pursue exciting new opportunities. These include moving into the external wall render market where it aims to repeat its success in the screed market by becoming the UK’s leading independent in renders also. So the company has the floors covered(!) and is now moving up the walls – quite literally onwards and upwards!
A BHP Corporate Finance team of John Longstaff, Mark Cooper and David Forrest acted as lead advisor to the company in relation to this transaction.
Adam Wiszniewski, finance director at Tekfloor, commented “Steve and I have known for a long time that the potential for Tekfloor was huge. The only thing holding us back was a lack of funding. It is very satisfying when a reputable investor like UKSE gives us such a vote of confidence. This investment will allow us to really kick on to greater things. I was pleasantly surprised at how quickly and smoothly the whole process went. This was mainly down to how well BHP Corporate Finance understood our business and how well respected they are in the investment community. This knowledge has been built up over many years of supporting us. Thanks to them”.
David Forrest commented “This is a genuine landmark moment for Tekfloor. Since starting out only six years ago the business has achieved phenomenal growth and of course had to deal with the inevitable challenges of such a growth trajectory along the way. This development capital fundraising is perfectly timed and gives Tekfloor the platform to take the business to the next level. It’s been a pleasure for us to have been part of their journey for several years now and we look forward to continuing to support Steve and Adam going forward“.
John Longstaff went on to say “Having got to know the business well, it has been very satisfying to have advised Tekfloor on this deal which provides the company with a substantial ‘fighting fund’ to facilitate its ambitious growth plans”.
This deal comes after an extremely busy 2018 for BHP Corporate Finance which saw the team complete 24 transactions with an aggregate value in excess of £200m. With continued healthy deal-flow, we look forward to announcing more completions in the coming months.