Magma has advised MTLS Ventures on its inward investment in South West company Parsons Bakery.
MTLS have acquired a “significant” minority stake in the business as part of a £1.7m fundraise, which includes a seven figure finance agreement provided by Santander Corporate & Commercial banking.
The fundraising will allow Parsons to create more than 200 jobs and double the number of its stores. It plans to open 12 shops a year for the next three years which will take its number of outlets from 34 to 70 by the end of 2015.
Parsons was founded more than 100 years ago and currently has sites in Bristol, Somerset, Gloucestershire, Wiltshire and Berkshire.
MTLS is an equity investor specialising in small and medium-sized businesses requiring funding between £500,000 and £1.5m. The Parsons investment is the firm’s second investment since launching in 2012. It’s first fund raised £6m, with a target of at least six investments by April 2014.
Matt Eves of MTLS said “We are delighted to have provided expansion capital to Parsons to enable the management team to grow the business to 70 sites. MTLS has been set up to provide successful businesses with the additional risk capital that is just out of the comfort zones of typical bank funding and we are delighted to be working with Nick and Chris to be assisting in growing the business.”
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