BGF Quoted has provided Accsys Technologies plc with a £12m investment to support its ambitious growth strategy including the development of the world’s first Tricoya® wood chip manufacturing plant in Hull, along with expansion of its existing Accoya® facility in the Netherlands.
BGF Quoted has provided funding alongside BP and Medite, the Irish MDF producer, who will own and operate the new site in Hull together with Accsys. Henderson Volantis and RBS are also supporting the venture.
London-headquartered Accsys is a global leader in the development and manufacture of modified wood products used by construction and timber companies around the world.
Medite and Accsys have been working together since 2012 to extend Accsys’ patented acetylation process – whereby soft wood is transformed into a strong, rot-proof, and durable material that is rivalling tropical hardwood – across new products and markets. The new site in Hull will be the world’s first plant to produce acetylated wood chips for use in specialised MDF panels.
At the same time, Accsys is significantly expanding its manufacturing capacity at its plant in Arnhem, the Netherlands, to meet substantial and growing demand for its products. Group sales have increased by 10% for the ten months to 31 January 2017, due to a growing customer base for its Accoya and Tricoya branded products which are used in joinery, decking, structural engineering and more. Over time, the Arnhem plant is being expanded to c.80,000 cubic meters, almost doubling its current capacity.
BGF Quoted makes long-term, flexible investments into businesses with strong management teams and ambitious growth plans and now has over £100m invested in quoted companies.
Paul Clegg, Accsys Technologies Chief Executive, commented: “We are delighted to be moving forward with these two transformational projects to secure new manufacturing capacity for Tricoya® wood elements and additional capacity for Accoya® solid wood. These developments will allow us to take advantage of the growing market opportunity for both Tricoya and Accoya which we believe to be substantial with demand continuing to grow for both products.
“Our ongoing relationship with industry leaders, BP, Medite and Solvay, and new financial backing from BGF, Henderson Volantis and RBS, are a strong endorsement of Accsys’ unique expertise and technologies. As a result, we are extremely well placed to capitalise on the significant growth potential.”
Stephen Welton, CEO, BGF said: “We are very pleased to be supporting Accsys’ ambitious growth strategy which includes the building of the new plant in Hull alongside BP and Medite. This funding once again demonstrates BGF’s ability to provide patient capital alongside other investors to help accelerate growth in the brightest companies on AIM.”
The funding from BGF Quoted consists of c.£10m to Accsys Technologies plc and c.£2m to support the joint venture between Accsys, BP and Medite.
The BGF Quoted investment was led by Joe Wilson, Michelle Wilk, Thomas McDonnell, Paul Stevens and Tom Jenkins.