Marketing services firm in £3.8m MBO

By December 3, 2013Finance, News

Granby Marketing Services, a leading response and fulfilment company, has completed a £3.8m management buyout, backed by Enterprise Ventures and NatWest.

The deal will see Joanne Varey, managing director, become majority shareholder while Stephen Bentley, who acquired Granby from the Omnicom Corporation thirteen years ago, will become Chairman and remain a minority shareholder. Craig Parsons, IT director at Granby, will also become a minority shareholder in the business.

Granby provides services such as direct marketing, e-commerce fulfilment, and warehousing and distribution to a blue-chip client base which includes Sainsbury’s, CTM, England and Wales Cricket Board, Department for Education and The Information Commissioner’s Office. The company is based in Blackburn and employs over 100 people.

Joanne Varey, Managing Director at Granby Marketing Services, comments on the announcement: “This feels like a natural step for the business to ensure we are evolving and maintaining our position as a market leader. It’s a fantastic opportunity for us to continue building on the growth and success Granby has undergone in recent years. Most importantly, it enables us to ensure we’re still delivering a seamless experience and offering to our existing client base, whilst alsogiving us the tools and capabilities to seek new revenue prospects.”

Enterprise Ventures provided £1.35m from its EV Growth fund to support the buy-out, with the incumbent bank NatWest providing £600k term debt alongside a £500k working capital facility from RBS Invoice Finance, and the remainder coming from investment by directors.

Wayne Thomas, Investment Director with Enterprise Ventures, adds: “Granby is a profitable, well positioned services business with an impressive, long-standing client base. It has invested heavily in IT over recent years to keep pace with new technologies. With large companies increasingly outsourcing non-core activities such as direct mail and fulfilment, the market is growing and Granby is well placed to take advantage of the opportunities.”

Liam Glennon from the NatWest Structured Finance team led the deal on behalf of the bank. Andy Phillips, along with a team including Amie Norris (corporate) and Tim Fearn(banking) of Pinsent Masons provided legal advice to Enterprise Ventures while Tim Hudson, Neil Robinson and Jeremy Booth of Mazars carried out due diligence.KPMG provided tax advice to the management team.

A team from Lancashire law firm Napthens solicitors advised Granby, led by corporate partner Richard Robinson and including corporate solicitors Claire Hynes and Sharon Harrison, employment solicitor Claire Haworth and commercial property solicitor Richard Clithero.

Richard Robinson of Napthens comments: “We have been delighted to help the Granby management team complete a deal, which allows them to continue growing their business with new partners whilst retaining continuity in both its management team and service offering.”

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