RSM advises Kingstown Associates management buy-out
Kingstown Associates vendors have been supported with corporate financial advice by RSM UK with respect to the management buy-out of the company. The new owners will continue to be supported by Managing Director Nigel Mellor as they seek to further the firm’s growth in the golden age mail order market.
Mail orders remain a way for people of a certain age to access their hobby and life-style activities. One of the UK’s larger players is Kingstown Associates. The company, based in East Yorkshire, has a number of lifestyle brands in its portfolio – focused on the 60+ year segment. The company provides “bespoke fulfilment services” through which it offers third parties a means to easily access a large consumer base of elderly people in the UK with their products. Last year, the company booked a turnover of £18 million in revenues.
The management buy-out was initiated by Jody Allan, the company’s Head of Buying for the past four years, Wayne Barry, the Head of Marketing, and Paul Chambers, the company’s Head of Operations. The sellers, who bought the company in 2009, are Nigel Mellor, who has been the Managing Director at the company and David Whittle, the company’s Director.
The transaction was supported by a number of third parties. RSM UK’s corporate finance team, including Steve Hubbard, Adam Fearnley (who has recently moved on to the Royal Bank of Scotland) and James Atkinson, provided the vendors with transaction advice, while Clarion acted as their legal advisers. On the other side of the table, legal advice was provided by Shulmans, while funding for the management buy-out came from HSBC who were provided legal support from Bond Dickinson.
Commenting on the work done for Kingstown Associates’ vendors, Hubbard, Corporate Finance Director at RSM, says: “We advised Nigel and David on their original acquisition seven years ago, and having seen them develop the business over that time and strengthen the management team, I am delighted that we have been able to assist them on the secondary buy-out as the business looks to its future success.”
As part of the deal’s structure, David Whittle will retire from the company; while Nigel Mellor will continue his current role, thereby supporting the management team. Mellor is positive about the company’s future, remarking that: “I’ve worked with the new team for a number of years during which time they have gained experience of the business and the sector in which we operate. Together we’re looking forward to continued growth and success.”
* In October 2015, RSM International harmonised the brand of all its global member firms to RSM, with the aim growing the RSM brand recognition and accelerate global growth.
