Management Buy Out of Liverpool Business Saves 11 Jobs
13th January 2008
A Liverpool company which manufactures pet accessories has undergone a management buy out in a deal worth in excess of £1/2 million.
Petlife Ventures t/a as Hi-Craft has been bought out by its manager Glen Brookfield after the company was placed into administration. The deal has enabled 11 staff to retain their jobs.
The funding package comprised £300k from Alliance Fund Managers through the MSIF Mezzanine Fund, £100k from the management and support from the company’s working capital providers.
AFM investment director Malcolm Jones led the deal for AFM and was advised by Andrew O’Mahony of leading North West law firm Brabners Chaffe Street.
Hi-Craft designs, manufactures and supplies a range of pet-related products including leads, collars, toys and beds. Customers include national and independent retailers throughout the UK and abroad.
Mr Brookfield said: “We continually enhance our product range and the Hi-Craft brand is extremely well known throughout the industry. I now plan to expand the business, particularly throughout international markets.
“I am delighted to have completed this transaction in what is undoubtedly a difficult time to raise finance. The support from AFM was critical in allowing this deal to happen.”
Malcolm Jones added: “Hi-Craft is a strong brand within this sector and the company had built up a loyal customer base. We are pleased to be supporting Glen who is extremely knowledgeable about the business and we are confident that the company will expand in accordance with his business plan despite the economic climate.”
Andrew O’Mahony commented: “Despite the current climate, there are still opportunities for ambitious company managers to drive business forward and create a secure future for their staff. Glen and his plans for Hi-Craft are a perfect example of how this can be achieved, even in a difficult funding market.”
Hi-Craft has been trading since 1956 and was a third generation family business until the MBO. Turnover is predicted to reach £5m in two years and the number of staff is expected to increase to 20 over the same period.
Ends
For further information contact Angela White @ Alliance Fund Managers on 0151 242 6376.
Photo shows – Glen Brookfield (Hi-Craft) Andrew O’Mahony (Brabners) Malcolm Jones (AFM)
msif funds
liverpool seed fund
The Liverpool Seed Fund provides equity-based investments from £50,000 - £750,000 to early stage businesses with IP