2021 was an extraordinary year for the M&A markets with a number of high profile deals completing in the North East. True Potential secured investment from Cinven, Carlyle Group invested in END Clothing, Fairstone secured further private equity backing from TA Associates and Tombola was acquired by Flutter Entertainment.
At Cavu, we had a fantastic 12 months which saw us advise on a record number of high quality transactions. We focus on delivering clients exceptional results, and we are pleased to have done that consistently throughout 2021 across a number of transaction types, including equity raises, cross-border transactions, and strategic acquisitions.
Cavu prides itself on establishing excellent long-term relationships with our clients and we are proud to have done that throughout our journey. 2021 was no different and saw us advise a number of our retained clients on important transactions, including advising the £450m turnover United Living (formerly Fastflow) and Elysian Capital on the acquisition of Great British Communications. This was the third acquisition we have advised United Living on following initially advising on the investment from Elysian in 2017.
We also advised the shareholders of J&B Recycling on the sale to global wastemanagement provider, Urbaser. We initially advised J&B on the £7.5m BGF investment in 2014 and we were delighted to be retained to secure an excellent exit result for all shareholders with a sale to the Spanish buyer.
The corporate M&A market also remained buoyant throughout, and we also advised the shareholders of Cumbria-based premium cycling retailer, Wheelbase on the sale to FTSE 100 listed JD Sports Plc. The acquisition of Wheelbase was important in JD’s expansion plans in the cycling market, at a time where the sector has been experiencing significant growth with a renewed focus on health and fitness.
Cavu also has vast experience of private equity transactions and has a market-leading reputation of delivering on such transactions. In 2021 we saw a number of businesses raise capital to supercharge growth.
For example, we advised the shareholders of Bazaar Group on a £10m equity investment from Comhar Capital. The investment from Comhar Capital was important to the business to support international growth plans, and to continue its growth as a market-leading e-commerce furniture company.
We also advised BGF on the £14m equity investment into Bloom Procurement and HiComply on the £3m development capital investment from BGF to support scaling in a rapidly growing compliance software market. We are pleased that 2022 has also got off to a great start with another cross-border transaction, advising Pacifica Group and Synova Capital on the sale of Pacifica Home Services to 3bn revenue German corporate Viessmann.
We expect the M&A market to be strong in the short to medium term and for valuations to remain high for the next 6-12 months. The outlook for the M&A market in the longer term is less certain but there remains a significant amount of dry powder within the private equity market seeking a home with businesses requiring development capital or business owners seeking to de-risk. We also expect corporates to continue pursuing strategic M&A opportunities. This makes now the perfect time for entrepreneurs and business owners to consider their options. The Cavu team would be delighted to meet to discuss your plans and aspirations and how M&A or private equity can help achieve your goals.
