Caravan parts firm lands £3.1m investment deal
A Derbyshire company which supplies parts to the caravan industry has landed a £3.1m cash injection from an alternative finance firm.
Duke Royalty has invested the cash into the MRDB Holdings Limited Group, which trades as Miriad Products in Foston.
Formed in 1977, Miriad is the largest privately-owned recreational vehicle parts wholesale company in the UK.
The deal will see Duke Royalty increase its equity share in Miriad to 30%. It initially invested £10m in the company in April 2019.
Neil Johnson, CEO of Duke Royalty, said: “We are delighted to be making this follow-on investment into Miriad, as the company’s preferred long-term capital partner.
“Using Duke’s capital to refinance this subordinated debt prior to its amortising start date will allow Miriad’s executive team to focus on growing the company rather than the distraction of the ‘refinancing treadmill’.
Duke’s ability to support the company at this time was welcomed as management did not want the uncertainty that may arise by seeking financing during a pandemic. Miriad’s business continues to expand and it has been one of the beneficiaries of the Covid-19 pandemic as UK residents make the decision to holiday at home rather than travel abroad. We look to the future with Miriad with confidence.”
Penny Whitelock, CEO of Miriad, said: “By upsizing our current facility with Duke, we have been able to remove any long-term uncertainty associated with paying down the VLNs. This also allows our management team a greater degree of control over the company and further enhances the relationship with Duke as our preferred long-term financing partner.”