MBO aims to help Country Baskets bloom
COUNTRY Baskets, the Yorkshire company which imports and distributes artificial flowers and decorations, has been acquired by its management in a £12m deal.
Matrix Private Equity Partners (MPEP) has backed the £12m management buyout of CB Imports, which runs the Country Baskets trading arm.
The CB Imports group of businesses was founded in 1990.
Operating from a national distribution centre in Leeds, the company is the UK’s leading importer and distributor of artificial flowers, floral sundries, glassware, giftware, basket ware and Christmas decorations.
The company also operates a division of wholesale cash and carry outlets trading as Country Baskets, with warehouses in Leeds, Manchester, Birmingham and Glasgow.
Country Baskets sells directly to florists and gift shops through its cash and carry outlets, whilst the CB Imports side supplies other wholesalers, garden centres and volume retailers.
Country Baskets, had previously been run by Paul and Linda Spencer. The couple were killed after their helicopter crashed in woodland in the grounds of Rudding Park Hotel, near Harrogate, in January 2008.
The company is planning to roll out further outlets across the UK as part of a new growth phase supported by MPEP, with the first new outlet opening in January in Gateshead.
It employs 270 people and has a turnover of around £20m.
Steve Wood, managing director of CB Imports and part of the MBO team, said: “We have traded strongly through 2009 and year on year benchmarks remain robust.
“Whilst the floral industry has been impacted by the economic downturn, it is generally robust and we are currently benefiting strongly from increasingly value focused customers.
“We are a well established business with a good track record of delivering profits. The MPEP team has eased us through the MBO process and now we look forward to further growth opportunities and expanding geographically.”
Ashley Broomberg, a partner at MPEP who led the deal, said: “We were attracted to CB Imports because it is a long established, profitable business which is a clear leader in its market. The business has traded very strongly over the last year showing the strength of being a price leader in the current environment.
“The fragmented nature of its market means that there is a significant opportunity to expand the business through a rollout of further outlets across the UK. There is very strong interest being shown by prospective customers in the new site being opened in Gateshead in January and we plan further geographic expansion over the next few years.
“We are delighted to have been chosen, in a very competitive process, to be the Company’s funding partner as it embarks on this growth phase.”
Advisors to the deal included:
Corporate finance: Jonathan Smith, Sterling Corporate Finance, Leeds
Lawyers to MPEP: Andy Stylianou, Sarah Yates, Chris Gayle, Wragges, Birmingham
Lawyers to management: Damian Collinge, Lee & Priestley, Leeds
Trust lawyers: Peter Barton, Gordons, Leeds
Due Diligence:
Legal: Graham Spalding, Wragges, Birmingham
Financial: Mark Pownall, Baker Tilly, Leeds
Commercial: Lisa Whelan, Price Bertram Dale, London
Property: James Frost, GVA Grimley, Leeds
