Breaking News: Arnold Laver in buy-in deal
TIMBER to property firm Arnold Laver has been acquired in a deal which represents one of the largest management buy-ins seen in the UK this year.
It sees the founder's grandson, Andrew Laver, supported by finance director Mark Bower and a management buy-in candidate, buying the company from the family trust which owned it.
The debt finance is being provided by Yorkshire Bank coupled with equity from the management team led by Mr Laver.
The headline figure for the deal has not been disclosed.
Sheffield based Arnold Laver has two core divisions. The £100m turnover Timberworld division has grown to become one of the largest and most respected timber merchants in the UK.
The property division has grown significantly in recent years carrying out a number of high profile developments in Yorkshire. Further schemes are in place which will see the division continue its expansion over the next few years.
The company was founded by Arnold Laver in 1920 and now employs 800 staff in 16 branches across the country including eight locations in Yorkshire.
The transaction, structured by Deloitte, sees the business returned to family ownership through the managing director Andrew Laver, finance director Mark Bower and the senior management team who have been joined by Nigel Petrie, the buy-in candidate and non-executive director.
The management team have bought Arnold Laver from the family trust whose decision to sell resulted from the business' pace of change requiring a more streamlined ownership.
Andrew Laver said: “The continued support shown by Yorkshire Bank throughout this complex transaction is immense news for everyone connected with Arnold Laver. We have a great family business, the success of which is built on the efforts of our staff and their commitment to excellence. This transaction will allow us to provide a solid platform for these efforts and allow the whole company to continue to grow and prosper. I am very proud that I will be able to lead the business during this exciting stage in its development.”
Mike Selina of Yorkshire Bank who arranged the bank financing for the deal said: “Our relationship with the Arnold Laver business goes back some 15 years during which time we have been able to help with their on-going growth and we are now delighted to support Andrew, Mark, Nigel and the team in taking their company to the next stage of its development.
“This transaction represents a superb opportunity for us to support a business with an excellent brand and market position. We are looking forward to continuing to work with the management team and helping them deliver an exciting future for their business. This deal further demonstrates Yorkshire Bank's commitment to the region, with over £200m provided to support transactions of this type in this year alone.”
A corporate finance team from Deloitte led by Maghsoud Einollahi, Paul Trickett and Richard Ibbett, advised the management team and managed the transaction process.
Maghsoud Einollahi, corporate finance partner at Deloitte said: “This deal allows the continued progress of one of Sheffield's remarkable success stories and to have the company remain in family ownership is great news for all of Laver's stakeholders. The support of Mike Selina has been critical to the successful completion of this complex transaction. We wish Andrew and his team every success for the future and look forward to supporting them with their ambitious plans.”
Cobbetts, led by Patrick Mitchell provided legal advice to the management team, with financial due diligence support from Mark Lister and Andrew Ryder of PKF.
