Newsagents MBO makes the headlines
THE BIRMINGHAM-based owner of a chain of newsagents whose brands include Arden News and and Supernews has undergone a management buyout.
The company, Rippleglen, is based in Saltley Business Park, and was founded in 1979 by Harry Metcalf, who sold the business to an MBO team led by managing director Mike Colley.
The Birmingham office of Cobbetts advised Mr Colley on the deal, and funding was provided by Lloyds TSB. Mazars in Birmingham also advised the management team, and was led by corporate finance partner, Andrew Millington.
Rippleglen operates 144 newsagents across England and Wales under three brands; Arden News, Supernews and News Shops. The business turned over £100 million in 2010 and employs 950 staff.
Mike Colley’s career in retail began at Stars News Shops Limited in 1976. He was appointed to the board as operations director in 1991 and joined Rippleglen as managing director in 2003.
Corporate partner and head of Cobbetts’ Birmingham office, Graham Muth, said: “With support from Lloyds TSB and from Harry Medcalf, Rippleglen is in a great position to continue its ambitious expansion plans. The deal demonstrates that businesses with solid growth prospects and scaleable business models can secure funding in the current environment and capitalise on market opportunities.”
Mr Colley said: “The buyout marks the start of a new era for Rippleglen as we seek to expand the business and diversify into new markets, such as convenience, as well as building our presence in bus stations, railway stations and hospitals.
“Rippleglen has been in very safe hands for nearly 32 years since Harry first established the business. To ensure that the company can carry on its proud tradition in the retail sector we look forward to being able to call on his broad experience if needed. He has indicated that he will be available for help or advice for the next couple of years or so.”
Corporate finance partner, Andrew Millington led the team at Mazars in Birmingham, which also provided advice to the management team.
