Our weekly deals round-up has proved to be a solid indicator of the appetite for investment across the region, so picking out the best deals was a tricky exercise for the business team. These were the most significant transactions totted up in the North East in 2023.
Arriva - Sunderland transport giant Arriva – one of the North East’s largest companies – was snapped up by a multinational investment group in October. The bus and train operator was sold by German owners Deutsche Bahn AG to I Squared Capital – a Miami-based group that invests in global infrastructure with assets around the world – having explored options to offload the business for a number of years. The deal, which would value Arriva at around €1.6bn (£1.4bn) is expected to complete next year.
ScS - Wearside sofa group ScS is set be taken into private ownership after a cash offer was made by Italian business Cerezzola Limited in October, valuing it at almost £100m. The company, which has a network of 100 stores across the UK selling soft furnishings, flooring and furniture, welcomed the offer from the business, a subsidiary of Poltronesofà SpA, with ScS directors telling how they considered the terms of the acquisition to be “fair and reasonable”. Shareholders have voted to accept the deal.
Banks Renewables - One of the biggest value deals for a regional company also took place in October, when family firm the Banks Group sold its renewable energy division in a deal reported to be worth as much as $1bn (£828m). Banks Renewables was acquired by global asset manager Brookfield – which owns Teesport operator PD Ports and has a total of $850bn of assets under management – in a deal it said would allow “the fuller development of opportunities” it has been exploring.
Iamproperty - North East major employer Iamproperty – which started as a two-man team in 2009 – unveiled growth plans in October on the back of multimillion-pound investment from new private equity backer Perwyn. The level of investment was not disclosed but it was speculated that the deal value was more than £100m.
The company was established by Jamie Cooke and Ben Ridgway to fill a gap in the market for a property auction company which could benefit both estate agents and buyers, and it now has more than 530 employees at its Gosforth head office, and is recruiting for more.
Wootzano - Sedgefield robotics specialist Wootzano – winner of the Innovation Award at the North East Business Awards – secured a ‘transformative’ £37.4m contract in the US for its systems which can delicately pick up fruit and vegetables to be packaged. The firm signed a three-year agreement with the unnamed organisation that will see its robots sold across California – an agricultural powerhouse that is said to produce more than a third of the country’s vegetables and three quarters of its fruits and nuts.
Pragmatic Semiconductor - The company which makes valuable semiconductors will create hundreds of jobs in the North East after securing investment of more than £182m. The firm, which has a factory in County Durham, announced a $206m (£162m) investment round as well as a separate private fundraise, to fund the next stage of its growth, which will see it build two more manufacturing lines at its plant in Durham and create more than 500 skilled jobs in the North East and Cambridge over the next five years.
Impact Recycling - Wallsend innovator Impact Recycling – which specialises in the separation of mixed waste – received landmark backing from Korean chemicals giant LG. The company received an undisclosed investment from the global operator in support of its “breakthrough” technology, a system that can sort plastics, diverting significant quantities of polyethylene and polypropylene – both used in a wide variety of products – from landfill and incineration.
Hays Travel - Sunderland’s independent holiday company Hays Travel had a busy year, swooping for South Wales company Travel House and its 16 shops in an undisclosed deal in November. The deal came two months after it added 45 shops to its network through the acquisition of Wrexham-based Just Go, which operates branches across the North West and North Wales.
Tekmar - Offshore cabling group Tekmar hailed a “big step forward” in April when it secured £22m investment to support its future through the combination of a shares subscription, placing and retail offer, and loan notes – including commitments from US-based private equity firm SCF Partners. The investment followed on the launch of a ‘strategic review’ last year in which Tekmar appointed North East advisors Bamburgh Capital and effectively put itself up for sale.
Elanders - North Tyneside’s Elanders Group boosted its UK position after snapping up regional player Kammac in a deal worth more than £100m. The Swedish-owned print, packaging and supply chain solutions provider – which has its UK headquarters at the New York Business Park – acquired North West-based logistics and warehousing firm Kammac in a deal which increases its warehousing space by more than 5.3m sqft, across 15 new locations.
