Arbuthnot Commercial Asset Based Lending Ltd. (Arbuthnot Commercial ABL) is pleased to announce that it has provided the asset‐based lending facility to support the management buyout (MBO) of Ken Lamacraft Marketing Limited (KLM). The transaction was introduced to Arbuthnot Commercial ABL by Castle Corporate Finance.
The facility includes a receivables finance line and a cashflow loan, providing the day‐one share purchase consideration, as well as ongoing working capital required to facilitate further growth.
The MBO deal sees Australian Bodycare U.K. Limited’s (ABC) Fiona Peerless and Kevin Gambrill, now joint MDs, acquire 100% of the shares in the group for an undisclosed sum. Both have vast experience of the company, its strengths and its strategy, ensuring a smooth management transition.
Founded by husband and wife Ken and Margaret Lamacraft in 1995, and headquartered in Tunbridge (Wells, Kent), the Group specialises in beauty products for the salon and retail sectors of the cosmetic market in the UK and Ireland. Brands include Australian Bodycare, Covermark and Steamcream. Key markets for the business are the major TV shopping channels, professional therapists, salons and spas, online retailers, pharmacies and high street retailers.
Commenting on the transaction, Andrew Rutherford, commercial director of Arbuthnot Commercial ABL, said:
“We are always pleased to support committed management teams in realising their ambitions to own the companies that they have worked in for so many years. The skincare and beauty industry is seeing exceptional growth, driven by strong consumer brand preference, and we wish the business every success in capitalising on the demand for its innovative range of products. Castle Corporate Finance played a comprehensive role in structuring the management buyout and it was a pleasure to work with them on this transaction.”
Stuart Stepney, director, Castle Corporate Finance Limited said:
“Arbuthnot Commercial ABL emerged at the forefront of a beauty parade of lenders to deliver this transaction. There were some inherent complexities with this deal and their experience enabled them to gain a rapid understanding of the business model and get to the nub of the issues very quickly. They ran a smooth diligence process and demonstrated the ability to scrum down with us as a deal team to drive the transaction on to completion.”
Kevin Gambrill, joint managing director of KLM, said:
“Fiona and I are excited at the opportunity of taking the enterprise forward into new areas with fresh ideas and a clear focus. The team at Arbuthnot Commercial ABL was extremely supportive and made the financing process simple and smooth. The transaction provided the initial purchase consideration and ongoing working capital, which will be utilised to accelerate business growth. Arbuthnot Commercial ABL was accommodating and easy to get on with throughout, which is a key consideration when looking to complete a deal together to tight timelines.”
He continued: “Castle Corporate Finance showed great professionalism and were instrumental is getting this transaction to completion. They were a pleasure to work alongside.”
Sara Carpenter of Rix & Kay Solicitors LLP advised the management team on the MBO.
Bermans Law advised Arbuthnot Commercial ABL.