Granby Marketing sold in £3.8m MBO
A LANCASHIRE outsourced response and fulfilment company has changed hands in a £3.8m management buyout.
Blackburn-based Granby Marketing Services has been acquired by its managing director, Joanne Varey, in a deal backed by Enterprise Ventures and NatWest.
Joanne Varey has become majority shareholder while Stephen Bentley, who bought Granby from the Omnicom Corporation 13 years ago, will become chairman and remain a minority shareholder. IT director Craig Parsons, has also become a minority shareholder in the business.
Granby provides services such as direct marketing, e-commerce fulfilment, and warehousing and distribution to a bluechip clients including Sainsbury’s, the England and Wales Cricket Board, Department for Education and The Information Commissioner’s Office.
The company is based in Blackburn and employs more than 100 people.
Miss Varey said: ““This feels like a natural step for the business to ensure we are evolving and maintaining our position as a market leader.
“It’s a fantastic opportunity for us to continue building on the growth and success Granby has undergone in recent years. Most importantly, it enables us to ensure we’re still delivering a seamless experience and offering to our existing client base, whilst also giving us the tools and capabilities to seek new revenue prospects.”
Enterprise Ventures provided £1.35m from its EV Growth fund to support the buyout, with the incumbent bank NatWest providing £600k term debt alongside a £500k working capital facility from RBS Invoice Finance, and the remainder coming from investment by directors.
Wayne Thomas, investment director with Enterprise Ventures, added: “Granby is a profitable, well positioned services business with an impressive, long-standing client base. It has invested heavily in IT over recent years to keep pace with new technologies. With large companies increasingly outsourcing non-core activities such as direct mail and fulfilment, the market is growing and Granby is well placed to take advantage of the opportunities.”
Liam Glennon from the NatWest Structured Finance team led the deal on behalf of the bank, which was advised by law firm Hill Dickinson.
Pinsent Masons provided legal advice to Enterprise Ventures while Mazars carried out due diligence.KPMG provided tax advice to the management team.
A team from Lancashire law firm Napthens solicitors advised Granby, led by corporate partner Richard Robinson.
