Management Buyout

PRICOA FINANCES MANAGEMENT BUYOUT OF COMPANY

York Mailing Group is the UK market leader in the specialist production of retail flyers, media inserts and quality catalogues. In the past two years the Yorkshire-based business has seen revenues grow from £69 million to more than £100 million through acquisitive and organic growth and significant investment in new machinery. This has also resulted in 275 new jobs and more than a 50 per cent increase in earnings to £12 million EBITDA.

Pricoa Capital Group has provided a term debt funding structure to support the management buyout of the company led by Group Managing Director Stephen Goodman. Chris Ingram, who co-founded the business in 1999, becomes Chairman and current Managing Director Mike Newbould will also remain on the board. The Business Growth Fund, an existing investor in York Mailing Group, will partially exit their investment as part of the transaction. Chris, Mike and the Business Growth Fund will continue as minority investors in the business.
 
Management valued Pricoa’s relationship approach and the certainty of execution provided by a one-stop funding proposition. The funding package enabled management to acquire a significant stake in the business, while also providing partial liquidity to existing shareholders. Pricoa’s long-term and patient funding provides an ideal platform to support management’s growth ambitions. Pricoa’s debt structure also accommodated York Mailing Group’s existing hire purchase funding and asset based revolving credit facilities. 

Management was advised by Clearwater International, supported by Browne Jacobson. York Mailing Group was advised by DC Advisory, supported by Lupton Fawcett.