£1.1m Investment Package Funds MBO of Darlington Group
5th February 2008
A Merseyside transport and warehousing business has undergone a £1.1m management buy out (MBO) funded by Merseyside Special Investment Fund (MSIF) and Venture Structured Finance.
Darlingtons Group plc, based in Eastham, Wirral, has a trading history dating back to 1930 and has since developed into a major North West transport and warehousing business. The company also supplies salt products, aggregates and gravel and is a major collector of materials for recycling. Darlingtons also has a depot in Glossop, Derbyshire.
Clients in the public sector include local authorities and transport networks while private clients cover the agriculture, chemical and food sectors.
The MBO was funded by an investment package totaling £1.15m comprising £400k from MSIF's £20m Mezzanine Fund and tailored acquisition debt and working capital facilities from Venture Structured Finance.
The finance deal was led by Malcolm Jones, investment director of MSIF’s Mezzanine Fund and Neil Topping, regional director, of Venture Structured Finance.
Keith Jones, formerly operations manager, now takes over the company as managing director. The previous management team consisted of the founder’s grandson, John Darlington, and his business partner, Philip Honor.
Keith Jones said: “I am looking forward to leading the company. The Darlingtons Group has been operating for 78 years and has forged an impressive reputation throughout the UK. I have plans to develop the service elements of the company while maintaining the core relationships with our current customers.”
MSIF's Malcolm Jones said: "Keith has an in depth understanding of the business and we believe he has the drive and skill to take Darlingtons to the next level. We are pleased to be supporting him and believe the company will perform very well under his management."
Neil Topping of Venture Structured Finance added: “Keith is a very experienced individual who has a proven track record. The company has an excellent reputation within the marketplace and we are confident Keith will continue to build on this.”
Turnover this year reached £6.5m, a figure which is expected to increase by around 20% over the next three years. The company employs 100 staff and expect that around 10 jobs will be created during the next three years.
Legal advisors in the transaction were Mace & Jones acting for MSIF, Bermans acting for management, DLA for Venture Structured Finance and DWF for the Vendors. A Anthony Corporate provided corporate finance advice. Hurst & Co undertook the financial due diligence.
Ends
Photo shows L-R – Malcolm Jones (MSIF) Neil Topping (Venture Finance) Keith Jones (Darlingtons)
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