Lloyds TSB Commercial Finance has supported the management buyout (MBO) of the second largest print design agency in the country*, which has been sold by its founder Mark Shaw to managing director and former Boots communications director Jayne Mayled.
Established in 1997 and based in Nottingham, Jupiter Design is a creative communications business specialising in retail and consumer brands. Its client portfolio includes high street retailers Boots, Wilkinson, Argos and Capital One.
Jayne joined the agency in 2006 and has now acquired a majority stake from Mark, who remains a minority shareholder. Jayne was assisted in the buyout by colleague Bill Turner, who also becomes a minority shareholder.
To facilitate the MBO and provide funding for working capital and expansion, Lloyds TSB Commercial Finance provided an asset based lending facility, which releases the value of the firm’s sales ledger.
Steve Goulden, associate director of business development at Lloyds TSB Commercial Finance, said: “When carrying out a strategic transaction like the MBO of Jupiter Design, some businesses require additional funding to support their cash reserves, but prefer not to relinquish equity to a third party or take on additional senior debt.
“ABL is increasingly being called upon to help structure complex deals to not only fund the initial transaction but also to provide the necessary headroom to allow the business to capitalise on post-deal expansion opportunities.”
The MBO will enable Jayne to lead the agency’s 80-strong team on its growth strategy, building on Jupiter’s already strong reputation.
Jayne said: “Mark Shaw founded an excellent business in Jupiter and I feel very privileged to lead our talented team on the next stage of our journey. Throughout the MBO process, we’ve remained focussed on balancing the deal with delivering the day-to-day business.
“We’ve had great support from Lloyds TSB Commercial Finance and our advisers, and now want to put all our energy into taking the business forward and building on our position as a regionally based agency working on national briefs for major brands.”
Jenny Moore, corporate finance manager at PKF, advised the purchasers. She said: “This deal is evidence that, even during the current economic climate, there is an appetite amongst good management teams to have the vision and entrepreneurship to invest in local businesses.”
February 2010
*Design Week, May 2009¢