Midland financiers have advised on the management buyout of a distribution firm.
Birmingham-based Dains Corporate Finance led the deal for the managing director of Cheshire household storage product distributor Scott Brothers.
The transaction sees Duncan Pratt-Thompson take a controlling stake in the company which has annual sales of £4 million, employs 15 people and supplies its products to large multiple retailers of household goods such as Argos, Lakeland and B&Q.
Scott Brothers is the largest supplier of branded vacuum storage bags in the UK, supplying the sector’s two leading brands – Pack-Mate and Space Bag.
Dains, along with Jonathan Tyson of law firm Else Solicitors, advised Mr Pratt-Thompson on the transaction, which was supported with a funding line of £1.6 million provided by Venture Finance via receivables and inventory finance. Venture received advice from law firm Flint Bishop.
Lead adviser Roy Farmer from Dains said: “Despite the difficult economic environment, we received a strong level of interest from funders which can be attributed to the high quality of the business and the strength of the team. We wish them continued success in the future.”
Teresa Geraghty from Venture Finance said: “Scott Brothers is a super example of a business taking back control of their growth potential.”