An investment in a 120-year-old Barnsley business has paid off for an organisation set up to boost the South Yorkshire economy.
South Yorkshire Investment Fund has doubled its money after realising the investments it put into concrete and drainage products manufacturer Naylor Industries.
As part of the deal, HSBC is providing Naylor with a new finance package worth £14 million, which will allow the Cawthorne-based business to push ahead with plans to grow internationally.
Edward Naylor, chief executive and the fourth generation of Naylors to run the firm, said: “We see fantastic prospects for our products in overseas markets and will be seeking to maintain the recent dramatic growth in export sales.
“We have a great history of making quality British products and the team looks forward to continuing the development of our business.”
Naylor employs 230 staff at plants in South and West Yorkshire, the West Midlands and Fife and increased its turnover by 14 per cent to £36.6 million in the last financial year, while notching up operating profits of £2.4 million.
The company received three investments from the South Yorkshire Investment Fund (SYIF).
The fund, which is now part of Finance Yorkshire and is run by YFM Equity Partners, was set up with backing from the European Union funded Objective1 regeneration programme.
SYIF aimed to bridge the financial gap facing small and medium sized South Yorkshire firms with significant growth potential and is now realising its investments.
A trio of law firms with operations in Sheffield provided advice on the deal.
Dean Gormley, partner and Northern head of banking and finance at Irwin Mitchell, advised HSBC, while DLA Piper advised Naylor and Nabarro advised SYIF.
Accountancy firm PwC, which also has offices in Sheffield, provided due diligence advice to HSBC.
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