Business Growth Fund invests £3.92m in luggage company Trunki


pound_sterling_170sqThe UK’s Business Growth Fund (BGF) has invested £3.92m in Magmatic to support the Trunki luggage brand owner’s plans to step up international sales and introduce new products.

BGF will now hold a minority stake in the Bristol-based business.

The deal takes the total amount of growth capital invested by BGF in the South West of England and South Wales to date to £30m.

In addition, HSBC provided a finance package to support Trunki’s growth.

The company said it expects to sell two million units of suitcases and other travel products in the UK and 97 other countries this year for revenues of £10m.

BGF’s regional director Paul Oldham said, “Trunki is a great example of the kind of business that BGF is committed to supporting.

“It operates in a growing market, driven by higher birth rates and increased travel. It can boast strong performance as a national success story.

“[Founder Rob Law] and his team are keen to take the next step, developing Trunki as an international business, and our injection of capital and wider operational support will help them to achieve this.

BGF invests £2m to £10m in British businesses with a turnover of between £5m and £100m.

It recently backed its portfolio company Springfield Homecare Services for the bolt-on acquisition of UK-based domiciliary care business Positive Life Choices.

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