Partner Article

D-Line and Middleton buyout Northstar's investment

A North East cable management firm and investor Jeremy Middleton have completed a six-figure deal with venture capital firm, Northstar Ventures, to buy out Northstar’s share of the company.

The Newcastle entrepreneur’s investment firm, Middleton Enterprises, initially invested in Seaton Delaval-based D-Line alongside Northstar Ventures’ North East Co Investment Fund in 2006.

Now Middleton Enterprises and D-Line have teamed with other investors to buy out Northstar’s initial £160,000 capital investment, which will be joined with other investment returns to form a new fund for North East companies.

D-Line, which supplies its cable management products, including its patented trunking, to leading DIY retailers and trade outlets, was set up when managing director Paul Ruddick spotted a gap in the market for a product which stylishly hides wires and tidies cables in ways which blend with decor.

In the last three years, D-Line’s annual turnover has gone from £1.2m to around £2.5m, £1m of which is from exporting its British made products.

Jeremy Middleton said: “I’m very proud to be working with a business which has successfully grown into a robust and profitable company, with much of the credit for that due to Paul and his team. D-Line is a strong exporter, recently expanding into both emerging and established global markets, including the USA and South Africa.

“We’re delighted that we have made a further investment into D-Line, which I believe will continue to expand and thrive. I think this is an excellent example of how investment can benefit both the investor and the investee, ultimately helping the economy to build and grow.”

Ian Richards, Director at Northstar Ventures, said: “We are delighted to see a business that we originally backed in 2006, and supported in successive rounds, grow to a level that enables us to realise our investment, and we wish the Directors and investors the very best for the future. As an added bonus, we are excited by the prospect of a new fund re-investing the returns from our investments into growing more successful businesses in the North East.”

D-Line’s founder and managing director, Paul Ruddick said: “Myself and the management are pleased to have received the continued support of the shareholders and this move will allow us to continue to drive the business forward. We have achieved so much and can now look forward to continuing our work with the support of a very focussed group of backers.”

This was posted in Bdaily's Members' News section by Tom Keighley .