ThinCats has provided out-of-home media specialist, KBH On-Train Media Ltd, with a multimillion-pound funding facility in order to complete a secondary buy out transaction. The deal consisted of various integrated elements working in unison together, including the refinance to complete a share buy-back and the provision of additional working capital. The key objectives behind the transaction structure were to enable the management team to acquire the shares from their investors and take full control of the business, in addition to supporting the operation with growth capital to fuel further expansion.
Established in 1998, KBH On-Train Media is today the sole provider of on-train media space in almost all short- and middle-distance train services serving London. Its core business is the creation, sales, marketing and maintenance of Traincard advertising space on trains through its relationships with train operating companies (TOCs).
ThinCats delivered the transaction in a competitive environment and against a strict delivery timeframe to fund the share purchase consideration and provide additional headroom to support the management team’s future growth strategy.
Ian Reynolds, managing director, The KBH Group commented: “We are really pleased to have selected ThinCats to provide the funding for this transaction. They went straight to the heart of the matter and demonstrated their commitment to getting the deal done by involving credit early on in the process. Right throughout the due diligence phase, ThinCats gave us a sense of comfort in the raise. The resulting transaction has given the Group an efficient board and ownership structure, a strategically focused outlook and a strong financial footing to operate with confidence, ensuring the future stability of the business in meeting its exciting plans for growth.”
Dave Sherrington, director of business development, London & South East at ThinCats, said:
“This was an excellent opportunity for the senior management team to bring the shares back into their ownership. We were delighted to support the management team at KBH On-Train Media with their secondary buy out and look forward to working with them to provide the new facility.”
He continued: “We provided a hands-on approach to execution and quickly got into the dynamics of deal delivery, enabling the transaction to be concluded successfully with pragmatism and pace, a real hallmark of our solution. Every credit goes to the ThinCats team in securing the facility under intense competition and, most importantly, to delivering the terms that the client required."