Frontier IP Group PLC has announced that its portfolio company, Alusid Limited, has successfully raised £500,000 through equity funding from Octopus Investments. This investment is part of a larger funding round totaling £1.13 million from existing and new investors, valuing Alusid at £9.5 million post-investment. Frontier IP now holds a 35.4% equity stake in Alusid, a company that specializes in producing premium-quality tiles from recycled industrial waste.
The proceeds from the funding will be used to support Alusid's expansion into new product ranges and territories. The company is set to launch hard-wearing floor tiles commercially this year and is in discussions with potential distributors in Scandinavia and Northern Europe. Additionally, Alusid is exploring options for an initial public offering later this year.
Octopus's investment comes after a successful year for Alusid, with Topps Tiles launching its first range of Alusid-made tiles, called Principle, made from a minimum of 91.3% recycled material. Alusid has also developed a successful relationship with Starbucks EMEA and has collaborated with Imerys to develop floor tiles, which comprise a significant portion of the total tile market in the UK.
Dominic Weller, Fund Manager at Octopus Investments, expressed excitement about supporting Alusid in establishing sustainable tiles from recycled waste as the industry standard. Alasdair Bremner, Alusid's CEO, expressed delight at the investment and support from Octopus, emphasizing the importance of this year for Alusid as they expand their geographical reach and seek to become a public company.
Frontier IP Chief Executive Neil Crabb highlighted the significance of Octopus's investment as validation for Alusid's capital-efficient business model and the quality of its products. He emphasized that the company is a leader in the industry globally and is set for a very bright future.
Alusid creates premium-quality tiles and architectural surfaces by recycling industrial waste ceramics, glass, and other materials, much of which would otherwise end up in landfills. The company's Sustainable Tile ranges are distributed in the UK by Topps Tiles and Parkside Architectural Tiles, and it also makes its own surface products under the brand name SilicaStone, distributed in the UK by Panaz.
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