The Duncan and Todd Group has secured a new £3.5 million follow-on investment from the Business Growth Fund (BGF).
BGF originally invested £5.6 million in Duncan & Todd in December 2013 in return for a minority stake and remains a minority shareholder following this latest investment.
Aberdeen-based Duncan & Todd recently acquired Dunfermline-based opticians Gunn & Galbraith for an undisclosed sum, as well as 20 20 Opticians adding six retail branches across Edinburgh and Glasgow. The company has also recently completed a £1 million upgrade of its Aberdeen manufacturing site which will double capacity.
As well as new investment from BGF, the Duncan and Todd Group has also agreed additional senior debt facilities with RBS to fund further growth and finance future acquisitions.
Group managing director, Frances Duncan, said: “The funding from BGF has helped us to grow our business and the follow-on investment is now boosting our expansion across Scotland.
“There is good strategic rationale for this latest acquisition as 20 20 Opticians has a similar model to Duncan and Todd because it offers excellent service and great brands at competitive prices.
“We are very excited about the future. Having a material presence in the central belt with the strong brand name of 20:20 provides a great platform for the business to continue its expansion across Scotland.”
BGF's Patrick Graham, who is also on the Duncan and Todd board, said: “BGF is all about backing growing businesses and we saw that there was an opportunity in the optical market when we made our first investment at the end of 2013.
“Once we invest in a company we want to continue supporting management to grow their business so providing follow-on capital is a key part of our business model.
“This is an excellent investment for Frances Duncan and her team and will provide a significant step-change to the Duncan & Todd business.”
BGF is an independent company backed by five of the UK’s main banking groups - Barclays, HSBC, Lloyds, RBS, and Standard Chartered - established to help Britain’s growing businesses with a turnover between £5 million and £100 million.