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VJ Technologies

VJ Technology (“VJT”) is a leading distributor of technical fixings, fasteners, consumables and related tools to the UK construction industry.

Background

VJT has a well-established brand with a reputation for premium-quality products and strong technical value-add support services.

Operating from its headquarters in Ashford, Kent, the business has a national coverage of the UK however it is currently heavily weighted to London and the South East.  This provides an opportunity to increase its reach in other parts of the UK and Ireland.  VJT has a diverse supplier network of over 400 suppliers and a broad base of c.1,500 customers with a strong focus on the less cyclical infrastructure and private housing markets.

The buyout from SIG plc was led by Mark Tomlin, the Chief Executive Officer, and the incumbent management team.

 

The Big Idea

VJT is the leading provider of technical fixtures and fasteners in its markets, along with the multinational Hilti Corporation. It is managed by a high-calibre management team who have demonstrated growth in both revenues and profits.  The business has a strong and dynamic customer-centric culture that should be an excellent platform for future growth.

VJT operates with higher than normal levels of intellectual property in the market where technical expertise and specification, together with very high service levels and strong supplier relationships, are often more important to customers than price.  This IP provides the basis for increased resilience and strategic importance.

The core end markets of infrastructure and private housing are less cyclical than most areas of construction-related spend.

 

The Grand Plan

A number of potential regional acquisitions have already been identified to rapidly increase national coverage and channels to market. Regional recruitment of technical sales managers with established relationships, coupled with Mark Tomlin’s industry contacts, will allow the business to target and better service new customers and projects in regional markets.

The implementation of new IT systems following the carve-out from SIG plc (including CRM and warehouse management systems) linked to the existing core ERP system will enable the business to track the full end-to-end process in more granularity and optimise performance and customer service through better holistic data- and KPI-driven decisions.

There is also scope to increase the proportion of sales from VJT’s well-respected own-branded products, particularly with greater focus on new product development and testing.

 

The Bottom Line

The business has a leading position in its market. Our business plan represents a continuation of its highly successful strategy, enhanced by geographic diversification and investment in people and technology to accelerate future growth.

VJT logo

Investment Summary

Date of investment:  June 2018
Deal status:  Current

Company website: www.vjtechnology.com
For more information talk to:  Alistair Armstrong or Chris Hopwood

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