| Management
Buy Ins (MBI) and Buy Outs (MBO)
An MBO/MBI is a mechanism to effect a change
of ownership of a business. It will often result in a change
in strategic direction, embarking on ambitious growth strategies
and possibly even subsequent acquisition strategies within
or across a market sector.
Flexible funding is necessary for both acquisition
costs and ongoing working capital requirements, normally in
the form of a structured asset based solution, either stand-alone
or as part of a larger equity based  package.
Have a look below at some of the MBOs/MBIs we have supported
to date::
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N/D funding for Electrical Engineers
Winder Electrical and Newton Derby Limited,
two Leeds-based electrical manufacturing companies have been
bought by their management teams for a six figure sum.
Winder Electrical and Newton Derby have both been established
for more than 100 years in the transformer and generator markets,
and are individually profitable businesses with solid order
books and strong trading records.
The parent company MP Industries has been suffering severe
cash flow problems, which led to its administration. The management
have stepped in and acquired both Winder Electrical and Newton
Derby who had a combined turnover of £8 million last
year. The businesses will continue without disruption to their
operations within a newly incorporated parent company.
The management team, led by chairman, Richard Asquith, general
manager Paul Matthews and operations director, Andy Pinkney
will be on the board of the new business. Emma Robinson of
McInnesCorporateFinance structured the deal that sees 100
per cent of the assets and goodwill of Winder Electrical and
Newton Derby transferred to the new parent company. The transaction
was backed by Enterprise Finance Europe and YFM Ventures.
Paul Goodchild of Enterprise Finance Europe in Leeds said:
"The provision of niche products, backed by experience,
reputation, expertise and high service levels will ensure
a robust future for these businesses. Enterprise Finance Europe
is delighted to be involved in the deal and is looking forward
to supporting this very capable management team to achieve
their plans for growth and profitability."
Chairman, Richard Asquith said he is delighted with the deal
and stated: "Everyone has worked hard to secure the
future for two of Yorkshire's most established manufacturing
companies. The businesses, although hampered by the problems
of the parent company, have excellent reputations within their
fields: the companies going forward are now able to realise
their potential. The management team is committed to the growth
of these specialist businesses within the next five years,
and can see a bright future for the skilled and dedicated
team at Leeds."
The company is a significant provider of transformer and generating
equipment to the power and distribution industries in the
UK and Europe. The customer base includes water and power
utilities and the company has a major ongoing contract with
the Ministry of Defence.
The swift deal will see no interruption of production at the
two companies' Belgrave Works in Pudsey, and there are
no planned job losses from the 75 strong workforce.
Mark Hunter of YFM Venture Finance added; "This is a
great deal which secures the future of two renowned companies,
both pioneers in the production of high quality engineered
products. The management has acted swiftly to make sure the
two businesses are able to secure existing orders and give
the continuity that is crucial to an effective business. Everyone
involved can now concentrate on the business moving forward
from very stable foundations."
Let us help you unlock the potential of your business or
investment - contact
us today.
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£3m J & J Tranfield Ltd
£3m to deliver MBO for record-breaking sausage manufacturer
Sheffield-based J&J Tranfield Ltd, who hold the world
record for making the longest ever sausage at 35.75 miles
long, has been sold by Hazlewood Produce (owned by Greencore
plc) to management in a £5.6 million deal put together
by Ford Campbell Corporate Finance, with funding from Enterprise
Finance Europe (EFE) and Allied Irish Bank (AIB).
Tranfield, who gained entry to the Guinness
Book of Records in 2000, manufactures chilled sausages and
has excellent relations with its major customer Asda.
The £24 million turnover business,
which is based in Orgreave Close in the Handsworth area of
Sheffield, employs 260 staff and places a strong focus on
innovation. In recent years, the company has developed some
excellent new flavoured sausages including Red Wine flavour,
Bacon and Garlic - which is known as a Toulouse sausage
and Red Thai and Lemongrass.
Originally a family owned business founded
in the 1930's, Tranfield produced potted meats. By the
1970's the product range expanded to include cooked
meats and Hazlewood Foods acquired the business in 1985. Following
a restructuring of the groups' activities during the
early 1980's, Tranfield switched to producing chilled
sausages.
Enterprise Finance Europe have provided £3
million of funding to support the MBO, together with ongoing
working capital facilities to support the business as it moves
forward.
EFE commented Tranfield has been a consistently
profitable and cash generative business. "This is a
very strong and capable management team who deserve this opportunity.
They have a solid strategy and we wish them every success."
The MBO team includes Alistair MacDonald
(48), who was formerly the managing director of Tranfield
and has since been group finance director of Hazlewood Prepared
Meals (which has a turnover in excess of £225 million),
together with Mike Hutchinson (55) who is the existing managing
director, who will continue in this role.
"This is an excellent opportunity for
us to move the business forward," said McDonald. "As
part of Greencore's ongoing and well-publicised disposal
programme we have now the chance to take Tranfield to the
next level via a strategic acquisition plan. We have an excellent
workforce and efficient facilities and we are looking forward
to the challenges ahead."
Let us help you unlock the potential of your business or
investment - contact
us today.
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£7.5m Printing Business
£7.5m to fund MBI of business out of receivership
Originally a family owned business launched
in the 1830s, our client is now one of the largest specialist
printing business in the UK, turning over circa £40m.
Its principle products are direct marketing material, specialist
packaging and promotional products. Our client also offers
a fulfilment service, of both its own printed material and
as a third party stand-alone provider of other parties'
printed material. Its factory is arguably the most advanced
in Europe, where its state of the art plant enables the production
of large volumes of material within a short lead-time. Our
client now boasts an impressive list of high profile clients.
After an initially successful period following
an MBO in 2000, our client experienced severe financial pressures
due to a combination of a high cost base and restructuring
costs owing to a premises move. Trading losses were recorded
in 2003. As a result cash flow difficulties ensued and the
business went into receivership. The business was then sold
to a new management team with a very impressive track record
in the printing sector, specifically in relation to turning
around loss making businesses.
Previously part of a factoring arrangement
with the invoice finance arm of a large Bank, our client required
a more flexible finance facility and Enterprise Finance Europe
offered this. Enterprise Finance
Europe worked with the management team to deliver a funding
agreement that would assist the company to develop a solid
platform from which they could return to a steady growth rate.
Let us help you unlock the potential of your business or
investment - contact
us today.
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N/D funding to Bernstein Group (BGH)
Bernstein Group looks to new heights as new management team
takes over the reigns
One of the UK's leading kitchen manufacturers,
the Bernstein Group plc, has been sold to a Buy-In Management
Buy-Out team led by entrepreneur, Bill Gleave. The deal will
see the company, which will now be known as BGH, consolidate
on its market position as well as building on its core brands.
BGH, based on Great Bank Road in Westhoughton
near Bolton, employs over 400 staff. The company sells an
extensive range of quality branded kitchens and appliances
into high street and national retailers, national builders
merchants and new build markets.
Gleave says he's always liked the dynamics
of the kitchen industry, "It's not a price driven
market and it has continually demonstrated growth which looks
set to continue.
"BGH is a first class business with
good, talented people with a high skill set across all levels,
as well as an excellent supply chain and high quality manufacturing
- these are all qualities I look for in a business."
Backing for the deal, has been provided by
the Manchester office of Enterprise Finance Europe UK Limited
(EFE), one of the UK's leading asset based lenders whilst
Ford Campbell advised the BIMBO team on the transaction.
Click here
for further information on this particular deal.
Let us help you unlock the potential of your business or
investment - contact
us today.
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N/D funding to CAE Office Supplies
Manchester advisers lead the way with MBO
Manchester funders and advisers have played
a key role in bringing about a Management Buy-Out. Enterprise
Finance Europe together with the Bank of Ireland have funded
the MBO of Watford-based CAE Technology Services Limited with
a2e Venture Catalysts Limited acting as lead advisers, structuring
the deal.
CAE are a national, value added reseller
of IT solutions. Their main activity is the supply of IT infrastructure
and related services to large corporates. With a £16
million turnover and a projected turnover of £25 million
for this year, the company employs over 40 staff. Established
in 1992, the MBO sees Justin Harling take on the role of managing
director with Michael Hashemian and Aggrey Lutta as fellow
directors.
CAE's position in the market is as
a solutions provider with the technical capability to provide
added value consultancy, design and support services to clients.
Vendor relationships with manufacturers including Cisco, HP,
Microsoft and BT enables the company to package together complex
systems and network solutions for clients based in the UK
and worldwide.
Enterprise Finance
Europe in the North said CAE has consistently generated good
profits. "This MBO will enable the business to move
forward to the next level. The IT sector has had a much publicised
downturn, particularly in hardware supply, but CAE have consistently
performed which is a credit to the management team who are
now leading the business."
Let us help you unlock the potential of your business or
investment - contact
us today.
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£2.2m Commercial Vehicle & Trailer Parts
Distributor
£2.2m to fund MBI
Our client, a Sheffield-based wholesale distributor
of commercial vehicle and semi-trailer parts, has undergone
a management buy-in. The opportunity for the MBI has arisen
as a result of our client's plc parent deciding to concentrate
on its core activities. The belief that the future of the
business would be better served under new ownership has generated
excellent opportunity for the MBI team to take the business
forward, with a great workforce and good product proposition.
Predicting a £10 million turnover,
our client is looking to grow by 20 per cent in the next two
years with customer service playing a key role. The business
will be seeking to out perform its competitors on product
availability, range, delivery and quality whilst remaining
competitive in the market place.
Employing 56 people, the new business will
be led by a very experienced team of business managers with
extensive industry expertise.
Paul
Goodchild, associate director with Enterprise Finance
Europe in Leeds led the Enterprise Finance team. "This
is a mature market and our client will undoubtedly increase
its market share through the quality of its products and service.
We're delighted to be backing the MBI team - who
have a proven track record - and are looking forward
to seeing them realise their ambitions for the company."
The company has already started on a restructuring
programme for the layout of the warehousing facility. Efficiency
studies have also been undertaken in relation to transportation
costs and improvements to the product picking procedures will
enable orders to be processed faster and increase customer
satisfaction. The sales team will also be playing a valuable
role in developing the business going forward.
Let us help you unlock the potential of your business or investment
- contact
us today.
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£750k Domiciliary Eye Care Provider
£750k financing to support BIMBO of optical service
provider
Our client is involved in the supply of domiciliary
eye care services primarily to National Health Service (NHS)
nursing home residents. The NHS is obliged to supply free
eye tests to everyone over 70 years of age. Our client provides
the eye tests and supplies the glasses to residents of these
nursing homes.
Our client employs 130 people, primarily
trained opticians, turns over in excess of £6m per annum
and operates out of 7 locations in the UK: Luton, Bournemouth,
Norwich, Coventry, Manchester, Sheffield and Glasgow. The
business currently looks after approximately 7,500 nursing
homes (out of a total of 30,000).
Up until recently, the business operated
as a division of an established plc, which provides personnel
and service solutions to the fast growing health and social
care market. The parent company has decided to concentrate
on its core competencies, hence the opportunity for the management
team to acquire the business.
Backing for the deal has been provided by
the London office of Enterprise Finance Europe (EFE), one
of the UK's leading asset based lenders, whilst Blandy
& Blandy solicitors advised the BIMBO team on the transaction.
Commenting on the deal, Enterprise Finance Europe
said, "The management team have shown great focus in
building this business to date and have a very clear view
on how to best avail of market opportunities. I'm confident
that the BIMBO will be an overwhelming success and am delighted
to support the business going forward."
The team at Blandy & Blandy was led by
the corporate & commercial partner, David Few, who was
assisted by Vishal Puri. Few said "We are grateful to
Enterprise Finance Europe for introducing us to this opportunity
as we have enjoyed working as advisors to the management team,
helping them to establish an independent and growing company
that looks set to expand its position as market leader in
its field and plan for the future with confidence. The optical
business has locations across the United Kingdom and employs
a considerable number of individuals. There were, therefore,
complex property and pensions issues to tackle as well as
ensuring that the internal structure of the business reflected
the requirements of its shareholders and other investors."
Let us help you unlock the potential of your business or investment
- contact
us today.
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Leeds manufacturing group bought by management
Winder Electrical and Newton Derby Limited, two Leeds-based
electrical manufacturing companies have been bought by their
management teams for a six figure sum.
Winder Electrical and Newton Derby have both been established
for more than 100 years in the transformer and generator markets,
and are individually profitable businesses with solid order
books and strong trading records.
The parent company MP Industries has been suffering severe
cash flow problems, which led to its administration. The management
have stepped in and acquired both Winder Electrical and Newton
Derby who had a combined turnover of £8 million last
year. The businesses will continue without disruption to their
operations within a newly incorporated parent company.
The management team, led by chairman, Richard Asquith, general
manager Paul Matthews and operations director, Andy Pinkney
will be on the board of the new business. Emma Robinson of
McInnesCorporateFinance structured the deal that sees 100
per cent of the assets and goodwill of Winder Electrical and
Newton Derby transferred to the new parent company. The transaction
was backed by Enterprise Finance Europe and YFM Ventures.
Paul Goodchild of Enterprise Finance Europe in Leeds said:
"The provision of niche products, backed by experience,
reputation, expertise and high service levels will ensure
a robust future for these businesses. Enterprise Finance Europe
is delighted to be involved in the deal and is looking forward
to supporting this very capable management team to achieve
their plans for growth and profitability."
Chairman, Richard Asquith said he is delighted with the deal
and stated: "Everyone has worked hard to secure the
future for two of Yorkshire's most established manufacturing
companies. The businesses, although hampered by the problems
of the parent company, have excellent reputations within their
fields: the companies going forward are now able to realise
their potential. The management team is committed to the growth
of these specialist businesses within the next five years,
and can see a bright future for the skilled and dedicated
team at Leeds."
The company is a significant provider of transformer and generating
equipment to the power and distribution industries in the
UK and Europe. The customer base includes water and power
utilities and the company has a major ongoing contract with
the Ministry of Defence.
The swift deal will see no interruption of production at the
two companies' Belgrave Works in Pudsey, and there are
no planned job losses from the 75 strong workforce.
Mark Hunter of YFM Venture Finance added; "This is a
great deal which secures the future of two renowned companies,
both pioneers in the production of high quality engineered
products. The management has acted swiftly to make sure the
two businesses are able to secure existing orders and give
the continuity that is crucial to an effective business. Everyone
involved can now concentrate on the business moving forward
from very stable foundations."
back to top >>>
Enterprise Finance provide funding package for Oxfordshire-based Firstline
Firstline Limited, the Bicester-based automotive component
distributor has undergone a secondary buy-out from Aberdeen
Murray Johnstone Private Equity with Birmingham's Enterprise
Finance Europe (EFE), one of the UK's leading asset based
lenders, providing invoice discounting, stock and trade finance
facilities to support the deal.
Firstline supply the vehicle aftermarket
with an extensive range of chassis, engine and braking components,
all of which undergo continuous research and development.
Key customers include; independent motor
factors and warehouse distributors. Established for over 20
years, Firstline employs 90 staff and has a turnover of £12
million.
The current directors sold the business in
1997 to the Finelist Group. Whilst Firstline continued to
perform well, difficulties in other parts of the group led
to its failure in 2000.
Firstline was bought back from the Receivers
with the backing of Aberdeen Murray Johnstone Private Equity
(AMJPE) in December 2000. The funding by EFE has enabled the
directors to complete the secondary buy-out from AMJPE and
take control of the business again.
Peter Joyner, managing director of Firstline
commented: "It's a great feeling to be truly independent
again and having the support Enterprise Finance for the future."
Enterprise Finance Europe director, Ian Bath
who led the deal said; "We are delighted to have supported
Peter and his team with this transaction. Despite difficult
trading conditions which have seen a number of their competitors
fail, Firstline have become a leading niche player in the
market with a strong emphasis on service.
"The package of facilities structured
for the company by EFE not only enabled the transaction to
complete, but provide the facility that the company require
to take advantage of future growth opportunities."
DLA Piper in Birmingham (Stephen Bottley and Natalie Town)
advised EFE with Gary Ecob of Kroll Corporate Finance advising
the management team.
PHOTO: Left to right: Peter Joyner (Firstline),
Ian Bath (Enterprise Finance Europe), John Madden (Firstline)
and Gary Ecob (Kroll Corporate Finance)
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