One of the UK’s leading TV and film set design firms - which has worked for Netflix, Disney+, HBO and the BBC - has completed a £9m management buyout.
Cardiff-based 4Wood TV and Film completed the multi-million pound deal following a £6.4m investment from London private equity firm Connection Capital.
The firm’s management team - Andrew Forse, James Thorne, and Richard Howell - bought the company from founders Scott and Lynsey Fisher.
The founders took a step back from operations in 2019 and appointed the current management team to oversee the company.
As part of the MBO, the owners will retain a board seat and a meaningful level of equity in the business.
Cardiff firm Lexington Corporate Finance acted as lead corporate finance advisor to Scott and Lynsey.
Executive chairman Chris Higgs and non-executive director Travis Baxter, who both have experience in the TV, film and media industries, also join the board to help drive the growth.
The deal was supported by a senior debt package from Virgin Money (Clydesdale Yorkshire Bank)
4Wood founder Scott Fisher said: “We are incredibly proud, and it has been hugely rewarding to have built 4Wood from a small family business to the multifaceted creative business it is today.”
He added: “The investment from Connection Capital along with their shared passion and vision to progress 4Wood, and the talented creatives we are so proud to work with, will undoubtedly take 4Wood to the next level. We are excited to see what the future holds.”
Andrew Forse of 4Wood’s management team said: “This is a really exciting time for the management team and a fantastic opportunity to grow our business with our new backers.
“Connection Capital was clearly the right partner for us in our MBO from the first meeting and the unique reach of their network has allowed us to source excellent support for the company in our incoming NEDs.”
He added: “We are really looking forward to working together to turbocharge the growth of 4Wood and continue revolutionising the approach to our piece of the production market in the UK.”
Established in 2005, 4Wood TV and Film is part of the rapid growth of drama productions in Wales along with Bad Wolf, Dragon Studios and Seren Studio.
The firm’s recent work includes productions of His Dark Materials, Sex Education, Doctor Who, and Da Vinci’s Demons.
4Wood is one of only a handful of companies in the UK with the scale, experience and expertise to deliver each aspect of set design, build and project management, from initial consultation through to disassembly and disposal on marquee high end TV and film productions.
It has an 85% share of the high-end TV and film set production market in South Wales - the second largest market in the UK after the South East of England.
Capacity in the South Wales studio market is expected to grow significantly in the next two years, as international production companies continue investing in the region.
Miles Otway, partner at Connection Capital, said: “4Wood has carved out a prominent position in the market, helping to establish Wales as a go-to location for TV and film production, raising the bar in its industry and developing excellent relationships with some of the biggest names in the business.
“4Wood is a well-run business with a first-rate reputation, excellent team and an impressive catalogue of productions, operating in a swiftly expanding market. It is now well-placed to capitalise on rapid growth opportunities, both in Wales and more widely across the UK, making it a highly appealing private equity investment proposition.”
Mr Otway said: “The management team has a deep understanding of the industry and has demonstrated a track record of delivering sets of the highest quality, at a competitive price, operating to short timetables and delivering for their clients. As the scale and complexity of sets required increases as competition for top quality content intensifies, 4Wood’s professionalism is likely to be in high demand.”
Pablo Shorney, associate director at Lexington Corporate Finance, said: "We are delighted to have advised the shareholders on this transaction. Scott and Lynsey have built an exceptional business with a fantastic track record of delivering high quality tv and film sets for some of the world's leading content creators. It was pleasure to work with the shareholders, management team and Connection Capital to deliver this result and we’re excited to see the group continue to thrive.”
