Team delivers deal for Kingstown
A MAIL order company has been acquired by a management team for an undisclosed sum.
Kingstown Associates, based in Driffield, East Yorkshire, mainly serves a customer base of over 65-year-olds and has annual turnover of £14m.
The new management team consists of existing finance and operations director Carl Edwards, who has been joined by Dave Whittle as merchandise director and managing director Nigel Mellor.
Mr Whittle and Mr Mellor each have 30 years experience in the mail order industry, the latter part of which was spent as main board directors of Bingley-based catalogue clothing company Damart’s UK operations.
Kingstown’s range of products includes problem solving health and beauty products, footwear, dress jewellery and kitchen and household products.
The company was established in 2000 when it launched its first catalogue to a customer base of 160,000.
Its customer database has grown to contain 1.4m names selling its range of products through seven catalogue titles, including Healthy Living Direct.
Mr Mellor said: “Dave, Carl and I are very excited to have the opportunity to take a strong existing business and develop it further.
“Given the current economic downturn, it is always pleasing to hear a good news story of a business prospering. This has been achieved by selling to consumers in a fast growing demographic sector; people will always grow older and have a need for problem solving products to make their lives easier.”
The management team was advised by Paul Johnson of Irwin Mitchell and Steve Hubbard of RSM Bentley Jennison with funding provided by the Co-operative Bank led by Pete Sumners.
Mr Hubbard said: “I have no doubt that the highly relevant experience of the management team will help the business to prosper.
“They have many ideas to develop the business further, including the development of internet based sales as the older generation becomes more technology literate.”