Case Studies
MBO as ceramic prints looks for growth
Yorkshire-based Ceramic Prints Ltd has announced an MBO that will see CEO Jonathan Davies and the senior management team take a significant stake in the company that has just been named to the Sunday Times "Fast Track 100" - a list of Britain's fastest growing companies. The £35m turnover business is the UK market leader in the design and supply of decorative ceramic tiles to a customer base including B & Q, Focus and Homebase.
The company, established in 1983 by Chairman Tony Taylor employs over 200 staff at its Brighouse headquarters and factory, and has increased turnover by more than 100% in 2 years.
Lloyds TSB Corporate and Lloyds TSB Commercial Finance have funded 100% of the debt in the eight-figure deal that has been structured to ensure the best possible use of a robust cash flow and underlying assets and allows the business to take advantage of its market-leading position over future years.
"I believe that the management team here is second to none, and the proof of that is in our financial performance over the past few years. I want to ensure that we have the best skills around the business to allow for long-term growth, and to maintain our standards of quality that have delivered our strong customer relationships," commented Taylor.
"I will continue to work with the team on a daily basis as Chairman, and I believe that we will be better placed to take on the challenges of growth with these additional shareholders," he added.
Founder and Chairman Taylor will continue to maintain equity in the business, and, together with the new stakeholders, Jonathan Davies, Andrew Collins, Daryl Shaw, Simon Weller, and Mike Mckinley, will continue the aggressive growth performance of Ceramic Prints.
Simon Banham, Senior Relationship Manager at Lloyds TSB Corporate said "This deal shows a great commitment to the future of a growing business by its management team, and we are delighted to see the people involved in its success to date becoming shareholders alongside the founder. We were particularly pleased to have been able to secure the entire debt funding from within the Lloyds TSB Group for this significant deal."
Peter Scaife, senior regional manager at Lloyds TSB Commercial Finance in Leeds, said: "Ceramic Prints is a solid business with an experienced management team and an excellent reputation amongst its customer base. The MBO will enable the team to focus on growing its share of the market by expanding its range of products and geographical coverage. Lloyds TSB Commercial Finance will continue providing working capital to give the business headroom as it grows."
Leeds-based advisors to the management and vendors and funders in the deal included Hammonds, RSM Robson Rhodes, Walker Morris, KPMG and Eversheds.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
