MSIF Backs £1.6m MBI of Sportswear Company

May 25th 2005

A Wirral-based sportswear company has undergone a £1.6m management-buy-in (MBI) just months after its entire stock and premises were destroyed in a devastating fire.

Jane Lennon from Bebington joined Bondvend Ltd, trading as The Soccer Company, on a full time consultancy basis immediately after the blaze in a bid to restore stability to the business.

Now she has bought the company with backing from Merseyside Special Investment Fund (MSIF), The Royal Bank of Scotland and directors' own investment.

The Soccer Company supplies team wear and accessories to amateur football teams across the UK, Europe and worldwide. The company also has a contract with Coca Cola supplying kits to schools and provided the team strip for the recent celebrity Tsunami Appeal charity game at Anfield in which football legends Kenny Dalgleish and John Barnes took part.

Ms Lennon, a chartered accountant, takes over the business from brother and sister team Paul and Dee Kelly who had successfully built up a turnover of £2.2million since setting up in 1990. Paul is continuing to work for the company as a consultant. Currently 12 staff are employed. Former showroom manager Steve Imlach has been promoted to the role of Operations Director following the investment.

The MSIF investment included a combination of mezzanine and venture finance totalling £1.1m. The deal was led by Malcolm Jones, Investment Director of MSIF's Mezzanine Fund and Dan Jackson of MSIF's Venture Fund.

The Royal Bank of Scotland funding was led by John Copping and Iain Pemberton from the Commercial Banking team, North West & North Wales.

MD Jane Lennon said: "After an extraordinarily difficult time we re-built the company and I am absolutely delighted that, thanks to the support from The Soccer Company workforce, MSIF, The Royal Bank of Scotland and our advisors, I was able to overcome our problems and successfully raise the cash to buy the business. We have already invested significantly in sophisticated software systems and online ordering facilities. It's an exciting time for us and I am looking forward to leading it through the next phase of growth and expansion.

"Our kits represent a unique combination of fashion and design flair with the highest quality high- performance materials at a reasonable price. We know there is already a massive demand for our products from male football fans and we are currently seeking to further extend our range to include teamwear for women and children too."

Malcolm Jones, Investment Director of MSIF's Mezzanine Fund said: "Jane is extremely resourceful and has already demonstrated outstanding management skills. The Soccer Company operates in a growing market and we believe the business has exciting potential."

Management expect turnover and staffing levels to double within the next two years.

Steve Stuart of The Steve Stuart Partnership provided corporate finance advice and financial due diligence was undertaken by Langtons. Denise Walker of law firm Brabners Chaffe Street advised the management team and Jonathan Brown of DLA Piper Rudnick Gray Cary advised MSIF. Sue Russel of Haliwells advised the vendors.

Ends

For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040

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Picture Shows (L-R) Dan Jackson, MSIF, Steve Imlach, Operations Director, The Soccer Kit Company, Malcolm Jones, MSIF and Jane Lennon, MD The Soccer Kit Company.

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