Seneca and Intrinsic back Homebuy Group MBO

ALDRIDGE-based easy payment finance provider Homebuy Group has undergone a £10m management buy-out in a deal which saw investment firms Seneca and Intrinsic provide equity.

Homebuy provides customers with an affordable means of acquiring household goods, including an exclusive range of furniture.

All purchases are supported by a consumer finance plan which allows customers to spread the cost of purchases across a series of affordable weekly payments.

Homebuy has operations across the UK in Glasgow, Belfast, Rotherham, Wigan and Sevenoaks. 

The firm, which has 20,000 customers, will use the funding to further develop and strengthen its presence in its regional markets.

Seneca partnered with Intrinsic Equity – the investment vehicle of Birmingham’s Orbis Partners – and the management of Homebuy in the buy-out of the group.

Midlands-based Nick Leitch, who leads Seneca’s equity and lending businesses, said: “We are delighted at this opportunity to partner with management and Intrinsic to deliver this transaction. The funding structure we’ve created ensures significant scope for management to grow the group.”

James Grenfell, Principal at Intrinsic Equity, said: ‘The management team has ensured the business is well positioned to service the growing demand of the customer base and we look forward to working with them to achieve the strategic plan.”

Senior debt facilities were provided by Hampshire Trust Bank and junior debt from Seneca Secured Lending.

Gateley advised Seneca and Intrinsic on the legals with Hill Hofstetter doing the same for management. Tax advice was provided by accountancy firm Smith & Williamson.