Bank of Scotland Corporate today announced that it has provided an integrated finance package totalling £51.4 million to fund the buy-out of Stead & Simpson, the UK’s third-largest specialist shoe retailer, by its management. Bank of Scotland will itself be taking a minority stake in the business alongside the firm’s management team.
David Lockyer, the Chief Executive and Peter Foot, the Finance Director will both remain at Stead & Simpson and have reinvested a significant percentage of the sale proceeds back into the company. Barry Stevenson, a former director of Marks & Spencer and B&Q, joins the board on completion of the MBO as Chairman. The transaction delivers a complete exit for the retiring Chairman, John Shannon, and Development Securities PLC.
The MBO follows a strategic review by Clearwater International to explore exit options for shareholders and to secure funding for the group’s planned expansion.
Stead & Simpson generates annual turnover in excess of £140 million. It trades from over 400 stores under the Stead & Simpson, Shoe Express, Lilley & Skinner, Famous Footwear and Peter Briggs fascias. Headquartered at Syston near Leicester it employs 3,700 staff.