DSW has advised on the Vendor Initiated MBO of Yorkshire Repak and led the associated refinancing of Bidco.
Yorkshire Repak – a specialist firm of secondary inspection and contract packers headquartered in Barnsley – has been purchased by its senior management team led by Managing Director Terry Foy in a management buyout after the original shareholders, Neil and Diane Askham had opted to step back from operational involvement 18 months ago.
Roger Esler and Paul Herriott at DSW advised the vendors and led the refinancing, with Julie Bowler at HSBC South Yorkshire providing new funding to support the deal. Nick Goulding of HLW Keeble Hawson acted as legal advisers to the vendors and Russ Cahill of the Tax Advisory Partnership acted as tax adviser. The management team was advised by Garbutt + Elliott and Shulmans.
The Company delivers specialist labour and inspection services to the drinks and glass container manufacturing industries across the UK and Europe, counting high-profile companies such as Allied Glass Ltd., Heineken, ABInBev, G & J Distillers and Ardagh among its customers. Yorkshire Repak is a leader in its field, with great potential for future growth which the new owners are confident will be delivered.
As well as its Barnsley site, the Company also has facilities in St Helens and Cumbernauld (both sites are HMRC approved for the secondary inspection and repackaging of alcoholic products), and from January 2016 Yorkshire Repak BV (Europe) will look after its European business based in the NL but working throughout the continental mainland.
Commenting on the deal, Managing Director and new majority shareholder, Terry Foy, said: “Having been with the company for over 26 years, I am still passionate about the business and my main priority was to ensure that our customers continued to receive the excellent standard of service they have come to expect.”
Roger Esler of DSW commented: “Yorkshire Repak is a long established specialist business with a blue chip customer base and is highly cash generative. Consequently, there was considerable interest from the banking and alternative lender market in supporting the VIMBO. We were able to structure the deal creatively and tax efficiently such that the interests and objectives of the vendors, management and importantly the business where fully aligned.”
Neil Askham, who remains a director and shareholder in the business added: “When my wife and I started to consider retirement from our business we were advised to make contact with DSW as our advisers throughout the sale. The process had a few twists and turns along the way. However, we can honestly say the sale would not have completed, had it not been for Roger Esler and his team’s utmost tenacity, experience and business acumen. A true professional and a job extremely well done.
The final outcome being we are highly delighted with the structure of the deal put together and furthermore would not hesitate recommending DSW to anyone.”