The management team at a Lanarkshire-based food ingredients firm has bought the business from its parent company in a £4 million management buyout deal.
Management Buyout Funding
Carluke-headquartered R&W Scott, which manufactures products including jams, has been sold to managing director John Easton and fellow directors Stephen Currie and Michael Hewitt by the Real Good Food (RGF) company as part of a disposal programme to cut its debts. R&W Scott, which employs 94 people, has been producing jams and preserves for some 130 years and also manufactures chocolate flavoured coatings and icings for retail, foodservice and wholesale customers worldwide. Under the management buyout (MBO) deal, a cash payment of £1.5m is being made to RGF, £500,000 of which is deferred until 30 September 2019, and R&W Scott’s management team is taking on £2.45m of debt.
Invoice Finance for Buyouts
Funding for the deal has been provided by Bibby Financial Services through asset-based finance and invoice discounting facilities, with further equity investment primarily coming from the management team. In RGF’s last financial year, R&W Scott contributed £10.36m of revenue, and incurred losses before tax and one-off items of £1.22m. Easton, who has worked in the business for 12 years, said the new ownership team was “committed to growing the business further and cementing our position within the industry”. “For employees and customers it’s very much business as usual in the short term, however, we do have several exciting innovative new products planned for the future,” he said. “RGF has been a supportive owner over the years, however this management buyout provides a strong platform from which we can really accelerate our growth plans and thrive as an autonomous business.”
Management Buy Outs and Buy Ins
When the opportunity arises to achieve your ambitions through a Management Buyout or Management Buy In, raising the finance you need can be difficult and distracting. With Invoice Funding it couldn’t be more simple. We work with management teams to deliver the maximum funding available against debtors and other assets. You can use this to acquire shares and provide working capital.
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