National law firm Shoosmiths has advised BGF (Business Growth Fund) on a £2.8m growth capital investment to RVL Group, an aviation services provider that operates a fleet of 15 aircraft based at East Midlands Airport.
Part of the investment is to be used for the final stages of a major project to design and create a new spray system for a freight-converted Boeing 737 aircraft, which can be used for dispersing oil spills. The project is due to be complete in the first half of 2015.
The remainder will be used to develop into new business areas and expand RVL Group's aircraft fleet, meaning it can take on more work.
As part of the deal, Graham Cole CBE joins the company as non-executive chairman and BGF's Tim Whittard and James Syrotiuk join as non-executive director and board observer, respectively.
Shoosmiths corporate partner in Birmingham Alastair Peet and associate Gareth Davies led the deal, with assistance from tax partner Kate Featherstone and banking partner David Adams. Intellectual property advice was provided by commercial solicitor Jo Joyce. This is Shoosmiths' third deal acting for BGF and ninth deal where the firm has advised on a BGF investment.
Tim Whittard, investment director at BGF, said: 'The Shoosmiths team again did a fantastic job on advising us on this investment. RVL has quickly established a strong foothold in a market with high barriers to entry. There are further opportunities that - as a company with plenty of ambition, energy and ability, and an enlarged aircraft fleet - it can capitalise on.'
Shoosmiths' Alastair Peet, said: 'It was a pleasure to work with BGF on this investment, which we believe will increase capacity so RVL Group can grow existing contracts and take advantage of new opportunities. We wish both BGF and RVL Group every success going forward.'
This is the 11th investment BGF has made in the Midlands, and its first investment in a company operating in the aviation industry.
Shoosmiths' corporate team has advised public and private companies, management teams, investors and debt providers right through the business life cycle. Shoosmiths works with businesses from start up and first round finance through to mergers and acquisitions, MBO and MBI transactions, development funding and on exits, by way of sale, listing or private equity investment.