Pictured: (l-r) Roy Farmer - Dains, Teresa Geraghty -
Venture Finance, Duncan Pratt-Thompson - Scott Brothers Limited,
Jonathan Tyson - Else Solicitors
In a transaction led by Midlands based Dains Corporate Finance,
Scott Brothers Ltd, a leading distributor of household storage and
organisation products, has been bought by its Managing Director in
a recent management buy-out ("MBO"). The Cheshire based company has
annual sales of c. £4million, employs 15 people and supplies
its products to large multiple retailers of household goods such as
Argos, Lakeland and B&Q.
The transaction sees Managing Director Duncan Pratt-Thompson
take a controlling stake in the business. New owner Mr
Pratt-Thompson joined Scott Brothers in 2008, and in that time has
been instrumental in the development of the company and its sales
growth.
Scott Brothers is the largest supplier of branded vacuum storage
bags in the UK, supplying the sector's two leading brands -
Pack-Mate and Space Bag. In addition, the company also distributes
the Ordinett soft storage range, including suit hangers and
colourful storage boxes. Scott Brothers supply products to high
profile customers such as Argos, Lakeland and B&Q, as well as
leading supermarkets including Tesco, Asda and Aldi.
Dains, along with Jonathan Tyson of law firm Else Solicitors,
advised Mr Pratt-Thompson on the transaction, which was supported
with a funding line of £1.6m provided by Venture Finance via
receivables and inventory finance. Venture received legal advice
from solicitors, Flint Bishop.
Lead adviser Roy Farmer, Dains comments: "We are delighted to
have been able to help Duncan achieve his goal of acquiring the
business. Under Duncan's leadership Scott Brothers has more than
doubled its sales in the past three years, and has become the
leading supplier of vacuum storage bags in the UK. Despite the
difficult economic environment, we received a strong level of
interest from funders which can be attributed to the high quality
of the business and the strength of the team. We wish them
continued success in the future."
Teresa Geraghty, Venture Finance comments: "Scott Brothers is a
super example of a business taking back control of their growth
potential. Our recent research suggested that many SMEs appear to
be sitting back and waiting for a brighter economic outlook, with
62% worried about borrowing money in the current climate. This
success story proves that there are real opportunities to be
grabbed - and that by unlocking the value of existing assets
businesses can find the funding they need to do so in a
sustainable, reliable way."
Duncan comments: "To be able to take the business forward, with
the full support of the existing management is a really exciting
opportunity for me. I am looking forward to driving the business in
the next phase of its development."
For more information on Dains, please visit their website
here: www.dains.com