Funding puts a gloss on Badgequo's plans
RM Corporate has advised in securing a funding package that has helped put the gloss on a West Yorkshire cosmetics company’s growth plans.
Silsden-based Badgequo has secured £900,000 from Finance Yorkshire, made up of an £800,000 equity investment led by investment director Ash Chopra, and a £100,000 business loan by investment manager Grahame Lunt.
Managing director Kai Arter said: “Our business can often be quite seasonal – for example Christmas presents or Mother’s Day gift sets – but the combination of equity and business loans from Finance Yorkshire ensures we have the flexibility we need.
Phil Bailey, who leads RM Corporate, commented: “Finance Yorkshire’s pragmatic and professional approach suited all involved and the team were able to work to the timescales dictated by Badgequo’s seasonal funding requirements.
Badgequo has been trading for more than 25 years, during which time the company has developed a wide range of cosmetic and toiletry products.
The company designs and manufactures branded gift sets and private label products for major high street retailers. The business was bought out by Kai and wife Linda in 2006 and has subsequently grown from seven employees, 70 customers and a turnover of just under £5m to 24 staff, 250 customers and a turnover of £7.7m. Badgequo products have also been exported to countries including France, Italy, the Czech Republic and Norway.
“Since the buyout, our supply chain has expanded and we’ve invested in sales, new product development, regulatory compliance and IT,” said Mr Arter. “We were looking for a different structure and approach to funding and felt Finance Yorkshire would offer us just that.”
“The investment from Finance Yorkshire will be used to develop and grow our business, predominantly in the UK as well as Europe. We expect to take on additional people at our Yorkshire headquarters in product development to help us drive forward our plans.”
A strong team was in place to advise Badgequo consisting of Phil Bailey from RM Corporate, who acted as lead adviser with lawyers James Fawcett and Jonathan Asquez of Gordons. Peter Considine and Rebecca Whitehouse of Walker Morris for Finance Yorkshire, helped secure the deal.
Commenting on the package, Phil Bailey said, “We are very pleased to have helped Kai and Linda with this important phase of Badgequo’s development. RM Corporate advised on the original buy out in 2006, and has continued to advise Badgequo on its strategic development since that time."
For more information about RM Corporate, click here, or telephone 01756 706611.
