Growth Capital Partners (“GCP”), the UK SME private equity firm that specialises in partnering with owner managers, has realised its investment in Arrow Business Communications (“Arrow”), a leading provider of business communications, IT and energy services to UK customers.
Since GCP’s partnership with Chris Russell and the team in August 2016, the business has successfully completed 8 further acquisitions, nearly tripled earnings and doubled the employee base whilst adding significant further scale and expertise in cloud telephony, energy and IT services in just 3 years.
MML Capital Partners LLP is now investing in Arrow to support the next phase of buy and build growth. The deal provides a full exit for GCP at a money multiple of 2.8x for GCP Fund IV.
Arrow can trace its roots back to 1995 and has over 5,000 customers including SMEs, mid-corporates and multi-national organisations. Arrow supports customers from a wide range of industry sectors and has particular expertise in the Professional Services, Retail and Hospitality and Manufacturing markets.
With a new investment partner and significant funding firepower, Arrow will continue to be a leading buy and build platform in the highly fragmented markets for B2B ICT and energy services. At the same time, the company will continue to expand its product range and technical capabilities to meet market needs.
Chris Russell, Chairman of Arrow, said: “From the start, GCP’s partnership-led approach made them stand out to us and since then, they have been a great strategically, helping us both source and execute our buy and build strategy and prepare us and our expanded team for our next phase of growth. Our shared values and culture have significantly contributed to the success of Arrow and the over achievement of our business plan and we thank them for all of their input.”
Richard Shaw, Partner at GCP, said: “Arrow has a unique culture and exceptional focus on delivery and it has been a pleasure to be in partnership with Chris, Richard and the wider team and to support them in achieving their ambitious growth plans. The investments made in people, systems and a national office infrastructure, together with the 8 acquisitions we have completed means Arrow is ideally placed for significant further growth as a fully integrated platform of scale. We wish the team and their new investors the very best of future success.”