Birmingham firms advise on household goods MBO
A CHESHIRE-based household storage and organisation products supplier has been bought by its managing director in an MBO advised out of Birmingham
The deal has seen Duncan Pratt-Thompson take a controlling stake in Scott Brothers. The transaction was led by Dains Corporate Finance.
Mr Pratt-Thompson joined Scott Brothers in 2008, and in that time has been instrumental in growing the business.
Dains, along with Jonathan Tyson from law firm Else Solicitors, advised Mr Pratt-Thompson on the transaction, which was financed by £1.6m from Venture Finance via receivables and inventory finance. Venture Finance was advised by Flint Bishop.
Scott Brothers has annual sales of around £4m and employs 15 people. It supplies its products to large multiple retailers such as Argos, Lakeland and B&Q.
It is the largest supplier of branded vacuum storage bags in the UK, supplying the sector’s two leading brands – Pack-Mate and Space Bag. In addition, the company also distributes the Ordinett soft storage range, including suit hangers and colourful storage boxes.
Lead adviser Roy Farmer, of Dains, said: “We are delighted to have been able to help Duncan achieve his goal of acquiring the business. Under Duncan’s leadership Scott Brothers has more than doubled its sales in the past three years, and has become the leading supplier of vacuum storage bags in the UK.
“Despite the difficult economic environment, we received a strong level of interest from funders which can be attributed to the high quality of the business and the strength of the team. We wish them continued success in the future.”
Teresa Geraghty, of Venture Finance, said: “This success story proves that there are real opportunities to be grabbed – and that by unlocking the value of existing assets businesses can find the funding they need to do so in a sustainable, reliable way.”
Mr Pratt-Thompson said: “To be able to take the business forward, with the full support of the existing management is a really exciting opportunity for me. I am looking forward to driving the business in the next phase of its development.”
