Fife housebuilder Campion Homes has bought out an investment firm after strong profit growth.
The active investor Business Growth Fund (BGF) has exited its investment in Dunfermline-based Campion Homes.
BGF initially invested a multimillion-pound sum in 2016 to accelerate the firm’s building programme.
Campion Homes has seen a strong period with turnover tripling in size from £14.6 million to over £45m.
The housebuilder is utilising its profit growth and strong cash generation over BGF’s hold period to buy out the investor’s position in full.
Campion Homes growth journey
Campion Homes is a family-owned business that has been constructing homes across East Central Scotland for more than 30 years.
It has completed 2,300 homes across Fife, the Lothians, Clackmannanshire and Perth and Kinross since 1989.
The firm has 160 direct employees and a base of suppliers and sub-contractors.
Executive chairman Peter Bell said: “BGF has been a great partner for us over the last six years, sharing our pride and passion for the quality of build that sets apart a Campion-built home.
“Our business has gone from strength to strength, with the BGF funding used to deliver even more quality homes across East Central Scotland.
“With this exit completed in a mutually beneficial fashion, we now look forward to the next step on our growth journey.”
The firm recently started a significant development at Oak Bank in Glenrothes, and viewings expected to open on a new collection of homes in Crieff in September 2022.
BFG investment in Tayside and Fife
Business Growth Fund (BGF) was founded in 2011 by Barclays, HSBC, Lloyds Bank, Royal Bank of Scotland and Standard Chartered banks in the wake of the 2008 financial crisis.
It aims to provide small-to-medium-sized businesses with financial investment.
BGF has since invested more than £2 billion in more than 300 companies, making it the most active investor in the UK. It never takes more than a 40% equity stake in a company.
Investor Euan Baxter said: “Campion Homes is a fantastic business that has a tremendously positive impact on the local economy in terms of the number of jobs it supports.
“We have thoroughly enjoyed working with its leadership group over the last six years, seeing the business scale rapidly.
“This deal demonstrates BGF’s flexibility on exit routes, and we wish the whole team well for the future and look forward to seeing the business continuing its positive trajectory.”
In 2019 Dundee tech firm Waracle received a £4.8m investment.
Blairgowrie-based raw dog food firm Bella and Duke was backed by a £5m investment from BFG last year.
Conversation