Lytham furniture manufacturer undergoes seven-figure MBO
A Lytham specialist contract furniture manufacturing business has undergone a seven-figure management buyout.
Managing director, Garry Smith, led the MBO of Barons, supported by Liverpool-based River Capital and Arbuthnot.
The combined funding package will also support the continued growth of the business.
The transaction follows a period of strong growth, and is the first investment from the newly launched River Capital North West Private Equity Fund.
Having recently celebrated its 50th year in business, Barons has built a strong reputation for producing quality furniture and distributes nationwide to a customer base that includes a portfolio of care homes, hospices, challenging behaviour and other care facilities.
Alongside Garry Smith, the board has been bolstered by the introduction of two experienced non executive directors, Gary Lasham and David Meltham, both of whom have a wealth of experience in the industry and growth businesses.
Garry Smith said: “Having helped drive the success of Barons over the past nine years, I am excited by the future prospects for the business and the backing now in place to help deliver that potential. I would like to thank all our customers, suppliers, and employees for their support throughout the years of the previous owners’ stewardship and look forward to working with all stakeholders in the exciting times ahead.
“Our key objectives are to continue to grow and develop new product ranges to support our core business and to increase capacity to enhance lead times and service levels.”
Jonathan Newton, investment manager, and Mark Borzomato, CEO, led the deal from a River Capital perspective with Mark saying: “Given its history and the markets it serves, Barons represents a very robust business, but one with strong growth potential. Having doubled its revenue in the past four years, we have worked with management to identify a number of further exciting opportunities to continue this growth.”
He added: “This is the first investment out of River Capital’s new Private Equity Fund which was launched last week and is a prime example of the kind of opportunities that we are confident exist in the North West marketplace. We look forward to more transaction news in the near future.”
Andrew Rutherford, commercial director at Arbuthnot Commercial Asset Based Lending, said: “This deal would not have been possible without the invaluable contributions of Paula McGrath of Brabners, who helped us navigate through the complexities of the process, and River Capital, a highly supportive sponsor within the region.”
Brabners’ head of deal advisory, Paula McGrath, said: “We worked closely with management to guide them through the transaction to deliver the right deal for the business and management. I am looking foward to seeing the development of the business under the guidance of management, River Capital and Arbuthnot, they have an exciting time ahead.”
Paula McGrath and Sean Gardner of Brabners Deal Advisory provided management and Newco with deal advisory advice, with legal support provided by Daniel Hayhurst at Brabners.
Legal advice for River Capital was provided by Michael Murphy at Weightmans and for Arbuthnot by Bermans. Financial due diligence services were provided by Jenny Kirkham and Daniel Gallagher at Cortus, management due diligence by The Quinn Partnership, and insurance due diligence by Vista.
Barons previous owners, Andrew and Rachel Rosser, were advised by Ian Dawson and Hash Saleem of Signature Corporate finance and Richard Robinson of Napthens solicitors.
