40 corporate finance
Mobeus and Connection complete MBO of Virgin Wines
Mobeus Equity Partners and Connection Capital have provided a combined debt and equity package to support the £15.9 million management buyout (MBO) of major UK wine retailer, Virgin Wines.
Mobeus and Connection have backed the highly experienced, incumbent management team of Virgin Wines, led by CEO Jay Wright, CFO Graeme Weir and marketing director Paul Adams, to acquire the business from Direct Wines. The management team was advised by Spectrum Corporate Finance, which introduced both parties to the deal, as well as securing a stock facility from PNC Business Credit.
The MBO comes at a time when the online wine market continues to expand, as many customers move to the convenience of online shopping. Virgin Wines is well positioned to grow in this market with a niche range of exclusive, boutique-quality wines and innovative customer loyalty schemes such as its WineBank scheme and its specialist wine plans, Discovery Club and JustREDS. Over 90% of the company’s wines are exclusive to Virgin Wines, sourced directly from producers and therefore unavailable from other providers.
Virgin Wines was founded in 2000 and acquired by Direct Wines in 2005. Jay Wright had previously built a successful mail order wine business, Warehouse Wines, which was acquired by Direct Wines in 2002. Wright, Weir and Adams took over Virgin Wines in 2008 and merged it with Warehouse Wines in 2009. The management team has successfully grown the combined business to a turnover in excess of £35m.
Wright commented: “This is great news for Virgin Wines. We now have the opportunity to grow the business independently, backed by two hugely supportive investors in Mobeus and Connection Capital. It is a dream come true to have completed the management buyout of a business that I have such a passion for and I look forward to working with our new partners to deliver continued growth and genuine innovation.“
Jonathan Gregory, partner and chief investment officer of Mobeus, commented: “We are delighted to back an excellent team and to be involved with the iconic Virgin brand. We believe that the online wine market will continue to
Telogis’ $93m funding to fuel investment in UK market
Telogis in the UK is set to significantly expand its operations in the wake of $93 million in institutional capital secured earlier this month by its US-headquartered parent.
Telogis intends to utilise the investment to further capitalise on the large and rapidly growing multi- billion dollar market for location-based products and services designed specifically for enterprises and organisations with substantial numbers of mobile workers and vehicles.
In the UK this will translate into investment in the current product line to target new markets, and a significant increase in staff numbers and office space to provide local support for its growing customer base.
Telogis provides a software-as-a-service (SaaS)-based platform for companies that require dynamic routing, real-time work order management, commercial navigation, telematics and mobile integration services for their workforces in the field.
Sergio Barata, general manager for EMEA, said: “This injection of capital comes at the ideal time for Telogis in the UK market. Having opened for business here more than five years ago, we have built a core of loyal customers using our location-based technology platform. We are now
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poised to rapidly expand our reach into several new markets by accelerating our engineering investment and providing best-of-breed solutions to segments including utilities, oil and gas and food & drink/supply chain and more.
“The new funding further cements Telogis’ position as a permanent part of the UK technology landscape – a dynamic place to work and one that enables us to attract and retain the very best talent. New opportunities will become available within our Bracknell office as Telogis continues to gain market share within the UK and around the world.”
Since its founding in 2001, Telogis has been privately financed by its founders, management and other individuals. The new investment represents the company’s first outside raise of institutional capital.
In 2011, Telogis became the exclusive technology provider for Ford Motor Company. Telogis also partnered with Volvo Trucks earlier this year to co- develop new telematics and navigation services for Volvo customers.
In December 2012 Telogis moved to its new offices in Bracknell to accommodate its continued expansion.
Details:
www.telogis.co.uk
grow strongly and Virgin Wines will continue to mature as an independent business.”
Julian Carr, partner at Connection Capital, said: “Virgin Wines is innovative in its approach to market which is testimony to a cracking management team who have turned the business around over the past five years and we look forward to working with Jay and the team to help the business achieve its growth plans.
“The majority of our clients enjoy a quality glass of wine as well as a quality investment. The unusual opportunity to combine both in the MBO of Virgin Wines saw it significantly oversubscribed and I am sure that many of our clients will become active wine customers.”
Simon Davies, managing director at Spectrum Corporate Finance, added: “It is unusual to seek to work with two private equity funds on a deal, but we saw the opportunity to bring together two teams that shared a common vision and understanding which was aligned to the passion and culture of the management team. It has been a great fit, and we are absolutely confident that this will be a storming success for all.”
Details:
www.connectioncapital.co.uk www.spectrumcf.co.uk
Mountain Warehouse MBO deal worth £85m
The management team of Mountain Warehouse has acquired the business from LDC in a deal worth £85 million.
Reading-based Spectrum CF acted as debt adviser to Mountain Warehouse, working closely with the company in sourcing and arranging a total package of senior and mezzanine debt facilities of over £50m to fund the buyout transaction and provide for the company’s ongoing working capital requirements.
Led by chief executive Mark Neale, the Mountain Warehouse team has taken full ownership of the company with backing from the Royal Bank of Scotland and Alcentra.
LDC bought a minority position in the outdoor goods retailer in 2010 as part of a £47m buyout, and the investor has more than doubled its original investment within three years, according to a statement from the firm. Neale says the company has the potential to expand to 300 stores across Europe and increase its online business. London- based Mountain Warehouse currently has six stores in Poland and is planning to open more.
Mountain Warehouse was founded in 1997 with its first store in Swindon. It targets market towns and locations popular with walkers and tourists, and several stores are in former Woolworths sites.
Details:
www.spectrumcf.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – DECEMBER13/JANUARY14
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