Mail order MBO for trio of entrepreneurs

A MANAGEMENT team has completed the buy out of Driffield mail order company, seven years after it was originally acquired.

Kingstown Associates has been bought by a management team consisting of Jody Allan, Wayne Barry and Paul Chambers.

The management trio have bought the business from former owners Nigel Mellor and David Whittle.

The company, which was founded in 2000 and turns over £18m, owns several lifestyle brands aimed at older generations. 

In 2008, Mr Whittle and Mr Mellor themselves completed an MBO of the firm with Carl Edwards.

Mr Whittle will now retire from the business in the management reshuffle, and Nigel Mellor will continue in the role of managing director to support the management team.

Steve Hubbard, Adam Fearnley and James Atkinson from RSM’s corporate finance team in Yorkshire advised the vendors on the transaction while Clarion acted as their legal advisers.

The funding for the MBO was provided by HSBC who received legal advice from Bond Dickinson while Shulmans acted for the new management team.

Nigel Mellor, Kingstown Associates managing director said: “I’ve worked with the new team for a number of years during which time they have gained experience of the business and the sector in which we operate. Together we’re looking forward to continued growth and success.”

Steve Hubbard, corporate finance director at RSM said: “We advised Nigel and David on their original acquisition seven years ago, and having seen them develop the business over that time and strengthen the management team, I am delighted that we have been able to assist them on the secondary buyout as the business looks to its future success.”