Rippleglen managing director Mike Colley has finally agreed terms for the long-awaited management buyout of the company.
The Birmingham-based CTN specialist revealed this week that Colley is to lead a vendor-assisted MBO that will complete on 8 April.
The news marks the end of a protracted saga stretching back more than four years, when a deal was first mooted. Colley's initial plan was put on hold while the business reduced debt acrrued from Rippleglen's acquisition of Eastcliffe News Shops in 2007. Although it did this, the economic crisis and the subsequent unwillingness of banks to lend to small and medium-sized businesses led to another hold-up.
Last year, the lack of progress on the deal prompted Rippleglen owner and chairman Harry Medcalf to appoint BCMS Corporate, a specialist in selling private companies, to find other buyers in case Colley failed to raise the necessary finance. "I'm delighted that after many months the future ownership of the company seems to be resolved," Medcalf said. "I'm doubly delighted it's the existing team of directors, who all along have been my preferred choice."
Medcalf could not confirm the identity of the bank involved but it is understood the directors will own 100% of the company once the deal is complete.
Earlier this month Rippleglen the UK's second-largest CTN chain, which operates 145 stores under the Arden News, Supernews, Candies, Supercigs and News Shops fascias reported a 19.5% hike in pre-tax profits to £256,000 for the year to 31 July 2010.
The Birmingham-based CTN specialist revealed this week that Colley is to lead a vendor-assisted MBO that will complete on 8 April.
The news marks the end of a protracted saga stretching back more than four years, when a deal was first mooted. Colley's initial plan was put on hold while the business reduced debt acrrued from Rippleglen's acquisition of Eastcliffe News Shops in 2007. Although it did this, the economic crisis and the subsequent unwillingness of banks to lend to small and medium-sized businesses led to another hold-up.
Last year, the lack of progress on the deal prompted Rippleglen owner and chairman Harry Medcalf to appoint BCMS Corporate, a specialist in selling private companies, to find other buyers in case Colley failed to raise the necessary finance. "I'm delighted that after many months the future ownership of the company seems to be resolved," Medcalf said. "I'm doubly delighted it's the existing team of directors, who all along have been my preferred choice."
Medcalf could not confirm the identity of the bank involved but it is understood the directors will own 100% of the company once the deal is complete.
Earlier this month Rippleglen the UK's second-largest CTN chain, which operates 145 stores under the Arden News, Supernews, Candies, Supercigs and News Shops fascias reported a 19.5% hike in pre-tax profits to £256,000 for the year to 31 July 2010.
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