Bosses take control at UP Global Sourcing as LDC exits

THE founders and directors of product sourcing specialist UPGS have bought out private equity investor LDC’s minority stake in the Oldham company.

Financial terms of the deal were not disclosed.UPGS – previously known as Ultimate Products – sold a stake to LDC in 2005 in a deal valuing he business at £25m.
 
The Chadderton-based company said it was performing strongly and expects annual earnings to rise by a third to £2m and sales hitting £54m up from £52.6m in July 2013.
 
Co-founder and chief executive Simon Showman and managing director Andrew Gossage led the management team which funded the deal alongside non-executive and the other founder, Barry Franks.

Additional working capital funding was provided by incumbent bank, HSBC.
 
Mr Showman said the deal was a “major step forward” for the business: “Cost control and renewed focus on our proposition helped steer the business through the economic downturn and provided a strong platform to take advantage of the upturn in our core retail markets.

“However, at the heart of our success has been the commitment and efforts of our management and staff who have all played a pivotal role in driving forward the business in what has been a challenging consumer environment.  I would like to take the opportunity to thank everyone at UPGS, HSBC and also LDC which has been a very supportive investor.”

UPGS, which designs, sources and supplies homewares, luggage and electrical products, trades with 26 countries worldwide.

Steve Harrison, investment director at LDC, added: “UPGS has a dynamic management team that has grown profits in a tough retail environment. The company is in a strong position to capitalise on the renewed optimism in the consumer market and we wish them all the very best for the future.”

Gary Black from solicitors Freeman Fisher and Tony Woolley from tax advisers Pareto advised the management team.