Press release
Cosmetic changes with MBO at Skipton firm
Skipton-based cosmetic designer and manufacturer, Badgequo Ltd, has been bought by its management in a £3million deal.
The business, which has a turnover of £5million, designs and manufactures a range of High Street cosmetic brands. The products, which include cosmetics, false nails and giftsets, are manufactured in the Far East, before being warehoused and distributed from the company's British base.
Lloyds TSB Corporate supported the deal via debt finance. Ongoing working capital for the business is being provided through asset-based lending by Lloyds TSB Commercial Finance.
The management buyout follows the previous owner's decision to retire following more than 20 years in the business. The move has been planned and executed by incoming management, ensuring a controlled hand over preserving both the business and jobs.
Kai Arter, the firm's new managing director, initially joined Badgequo during the second half of 2005 from Aerovac Systems, part of London stock exchange quoted company UMECO. With a background in accountancy, having trained with KPMG in Leeds, Mr Arter has always harboured ambitions to run his own business and saw an opportunity arise with Badgequo that enabled him to join the business prior to buying into the firm.
Lloyds TSB Corporate worked with Lloyds TSB Commercial Finance, Mr Arter and RM Corporate Solutions to formulate an appropriate financial solution that would ensure a smooth and timely transaction for all parties.
Kai Arter commented: "Badgequo is a well established company and one that I see as having excellent potential for growth. I'm excited about having the opportunity to develop the business and introduce new products and targeted brands, as well as improving customer service and building awareness in the marketplace.
He added: "Lloyds TSB were existing bankers to the firm and have moved swiftly to forge a strong relationship and support the deal, quickly developing an understanding of my intentions for the business, putting together a suitable finance package and working with me to ensure a quick execution.
Lester Mulligan, senior relationship manager at Lloyds TSB Corporate said: "Having worked with Badgequo for many years it is fantastic to see the business moving into another pair of capable hands following the former MD's retirement. Mr Arter has experience in managing and developing companies and I'm looking forward to supporting his ambitions for growing the business in the future.
Asset based lending facilities were secured against Badgequo's debtor book and stock and will provide the working capital required to support the business' future expansion plans.
Peter Scaife, business development director, at Lloyds TSB Commercial Finance in the North East, said: "This is another good example of the Lloyds TSB Group working together to provide a suitable and speedy package to help a business move forward. Badgequo, though its previous managing director had built up a strong market offer and customer base. The new management team will provide fresh impetus and drive, and I'm confident that the firm will go from strength to strength.
Phil Bailey at RM Corporate Solutions has worked with Kai for over two years looking at suitable opportunities for acquisitions and provided advice throughout the whole acquisition process up until completion.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
