T123 OFF TO A FLYER! The Steve Stuart Partnership (TSSP) successfully completed in the Management Buy Out of a Lancashire-based airport ground support equipment supplier.
TSSP were appointed to lead the MBO process by Brian Sneyd when the opportunity came to buy the Fleetserve division of the Multipart Group.
The business supplies ground support equipment for airports, such as trucks, elevators and baggage carriers, as well as parts for specialist vehicle fleets such as The London Fire Brigade.
Jon Else (Director), who led the deal for TSSP, said: “We quickly saw the growth potential in Fleetserve and were delighted to help him achieve his objective of buying the business he had founded in 2000. The strong debtor book and inventory level meant that Asset Based Lending was the natural funding choice. We worked with Venture Structured Finance to create a package that included invoice discounting line, a stock facility and a cashflow loan.”
T123 Limited was the vehicle created to implement the MBO following the £2.6m funding from Venture Structured Finance, which complemented the equity investment from the management team.
Brian Sneyd, MD of T123, described it as “the perfect funding solution”, providing him with an alternative to giving away large sums of equity in the business.
Mr Sneyd added: “With no traditional property assets, we were able to maximise our stock, contracts and debtor book to deliver the initial funding injection and ongoing working capital.”
The new T123 company now has 30 staff and a turnover of £12m.
Neil Topping, regional director of Venture Structured Finance, added: “Venture was pleased to be able to work with TSSP and Brian to provide an Asset Based Lending package which gave the business the headroom it needed to facilitate the acquisition, but also provided a revolving facility which will grow in line with the newly formed company.”
Photograph credit: Photographer
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