NCM client Elaghmore has acquired a 42% stake in Trutex Limited (“Trutex”), one of the UK’s oldest and well known, quality school wear producers. In addition to acquiring the stake, Elaghmore is investing £2.5m of new equity into the business. At the same time, Trutex has agreed a new £18.5m refinancing facility with AURELIUS Finance Company.
The new investment and finance facility will support Trutex’s UK and overseas expansion. Outside of its leading presence in the UK, Trutex has operations in Dubai, Trutex is looking to grow its presence in China and Saudi Arabia where there is a growing demand for the high-quality, long-lasting premium garments that Trutex is famous for.
The expansion builds on Trutex’s over 150-year history of supplying high quality school uniform. Trutex is a strongly performing, profitable business, with revenue almost doubling to £35 million since 2015.
The investment and financing will maximise working capital headroom over the course of the school year, supporting the business in building its order book ahead of peak trading periods. Elaghmore’s investment comes from Elaghmore Fund 1A. Elaghmore Fund 1 was launched in December 2016 with an initial raise of £60 million, with a further £40 million raised subsequently from US investors to create Elaghmore Fund 1A.
Focused on acquiring small to mid-cap UK companies across multiple sectors, Elaghmore’s investment strategy is to use its Executive team’s proven operational skills to deliver significant growth and value creation.
Matthew Easter, Group CEO, Trutex, said, “The investment by Elaghmore and the new finance facility will support our ambitious growth plans. Trutex is a great brand that has performed strongly over recent years, as schools and parents recognise the importance of style and durability when it comes to school uniforms. We are already the market leader in the UK supplying thousands of schools, and there are substantial opportunities to take our heritage and expertise to new international markets in Asia and the Middle East, particularly.”