Clearwater International has advised the management team at leading print supplier York Mailing Group (YMG) on their MBO which has financial backing from Pricoa Capital Group.
YMG is the UK market leader in the specialist production of retail flyers, media inserts and quality catalogues. In the past two years, the Yorkshire-based business has seen revenues grow from £69m to more than £100m through acquisitive and organic growth and significant investment in new machinery. This has also resulted in 275 new jobs and more than a 50% increase in earnings to £12m EBITDA.
YMG were one of the first Northern-based businesses to be backed by BGF (Business Growth Fund). BGF and Chris Ingram, who co-founded YMG in 1999, and current MD Mike Newbould will all stay on as minority shareholders. Stephen Goodman will lead the management team who have also become shareholders in the business.
In the last two years, YMG has acquired two businesses – The Lettershop Group in 2013 and Go Direct Marketing in 2014 – which have added advanced printing capabilities and a new data driven analytics division. These developments have helped YMG to win some substantial new contracts and the investment in technology positions the business perfectly for continued growth.
Pricoa Capital Group is the international private debt investment business of US-based Prudential Financial Inc (NYSE : PRU). Pricoa has been a consistent provider of capital to UK middle market companies for over 30 years.
The Clearwater International team was led by partners Jon Hustler and Mark Taylor, who were supported by Rob Britton and Mark Gillingham. Gavin Cummings of Browne Jacobson LLP acted for the buyers and management on the acquisition.
Stephen Goodman, Group MD at YMG, said: “Chris and Mike have built a well invested business, with excellent customer relationships and a strong sales pipeline. The management team at York Mailing are excited by this opportunity and delighted to have the support of Pricoa Capital Group, Chris, Mike and the BGF.”
Jon Hustler, Industrials Partner at Clearwater International, commented: “It was important to the new management team that their financing solution allowed them to acquire a significant stake in the business whilst maintaining an appropriate funding structure. The business is extremely well placed for continued growth and we wish Stephen and the new management team every success.”
Mark Taylor, Debt Advisory Partner at Clearwater International, added: “We arranged bespoke debt capital facilities and follow on funding capabilities with Pricoa Capital Group which will support the ongoing growth of the business, whilst meeting both shareholder and management aspirations. The transaction highlights the strong interest being shown by alternative funders in quality UK assets.”