Deal round up 12/06/02

Gresham backs Drakes MBO; Isis Capital finances BodyCare growth; PallMall completes first deal

Gresham backs Drakes MBO

Private equity firm Gresham has invested in the management buyout of Drakes Group, a UK provider of debt and fines enforcement services. Gresham has backed a management team of five led by current chief executive Frank Millerick in the £12m deal.

The deal is the first generated by Gresham’s Manchester office which was opened in September 2001. The firm expects sales to rise from just over £9.7m in the year to end-March 2002 to £13m in the current year, and also anticipates strong profits growth. Drakes was founded as a private investigative agency 65 years ago in Hackney, East London.

Isis Capital finances BodyCare growth

Isis Capital has provided BodyCare International with £5.5m of equity financing as the firm looks to boosts its operations in the indoor tanning market. Isis was joined in the financing round by Barclays Bank, which has provided debt finance. KPMG Corporate Finance Nottingham was adviser to the transaction.

The firm was established in 1998 by Adam and Ciaran Mooney. BodyCare’s subsidiary The Tanning Shop is now the UK’s number one indoor tanning operator with 100 salons around the country, and BodyCare Direct the UK’s leading wholesaler and distributor of tanning equipment and related beauty products. The funding will be used to launch a new product line.

PallMall completes first deal

PallMall Technology Ventures has completed its first investment since the announcement of its first closing in April. The fund, together with a number of other undisclosed investors, has backed the E2.5m management buyout of Cambridge Cognition from CeNeS Phamaceuticals.

Cambridge Cognition is a developer of computerised products for medical diagnoses and research. It is expected that the buyout will enable the firm to expand rapidly and develop the commercial potential of its product range.