The multi-million-pound deal saw the business sold through a Vendor Initiated Management Buy-out, or VIMBO, to the existing management team, and involved the founders retaining a minority roll-over stake in the new company.
The debt-funded deal was funded by a term loan and working capital facility from CYBG in Birmingham led by Directors Martin Aston and David Burgess.
“We are delighted the business has sold and to be a part of the next stage in Avanta UK’s journey. Our team acted for Avanta UK’s shareholding founders on the sale of the business to the new company that is majority-owned by the new management.
“The VIMBO is a species of MBO that is growing in popularity, and this is the second deal of this type for Lodders in recent weeks. A VIMBO is ideal for Avanta UK as it provides flexibility that allows the sellers to retain a minority roll-over stake in the new business so that they can continue to support the new management team as they take the company forward.”
A team from FRP Corporate Finance’s Birmingham office, including Gary Hyem, Fahim Kassam and Matt Field, acted for the shareholders.
“This deal allows the shareholders to realise part of the value that they’ve created over the last 20 years as they work towards their ultimate retirement. Andrew and David were keen to pass the business on to their trusted colleagues in order to maintain the culture and core values of the company, and this is exactly the type of deal that enables that to happen. We’re currently looking at a number of other transactions with similar objectives.”
Avanta UK Ltd is an independent company with 20 years’ experience in designing and sourcing equipment. Long-term partnership arrangements and rigorous appraisal of its portfolio of extensive manufacturing partners ensures that its clients have access to high quality and competitively priced standard and non-standard products.
The company works with high-street names including Next and Boohoo; warehouse and logistics companies such as arrowXL, AKW Global Logistics and Lockwood, and airlines including Jet2.
Based in Leeds, Avanta UK works nationwide and has installation teams located in Manchester, Birmingham, London and Glasgow.
Lodders offers expert legal advice to business owners looking to divest, grow and raise finance. For more information, contact Graham Spalding.Contact us
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