Case Study: Mail Solutions Group Ltd

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Deal size:
Undisclosed
Transaction:
Management buy-out
Sector:
Commercial
Deal completed:
April 2007
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About the deal

Meridian advised the shareholders of Longmax Industries Limited (“Longmax”) on their £25 million vendor initiated management buy-out ("VIMBO"). Longmax, trading as Mail Solutions, is a print, envelope and mailing group with a turnover in excess of £27 million and pre-tax profits of over £4 million.

The subject of a £7 million management buy-out from Homeserve plc in June 2004, this transaction allows the original MBO team to extend the rewards of ownership to their second tier of management. The new shareholders consist of various members of the management team from 3 operating divisions.

Since the original MBO, Mail Solutions has grown its business by both organic and acquisitive means. Phil Reid, Group FD and Company Secretary commented "We engaged Meridian Corporate Finance as our advisors to help us define our strategic direction. After working with them for several months the VIMBO opportunity appeared to be the most appropriate route to take. We were extremely pleased with the interest shown by the second tier of management and view this as a positive step for the continued growth of our business. Having advised us on our original MBO, we would like to thank both Meridian and Blakes through both Michael Barcia and Nick Gent for their knowledge and enthusiasm in driving this deal to completion.  We would also like to thank them for introducing us to our new bankers HSBC and project managing the process smoothly to completion.“

Commenting on the transaction, Michael Barcia of Meridian said "Mail Solutions is an extremely well run business in a challenging sector. Their returns are well above the market norm and we look forward to helping them expand and grow their business by acquisition over the next few years.  All of the advisers on the transaction originated from the Southampton area which gave us a high degree of control over the deal without any loss of professional input.“
 

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Operating divisions

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After working with them for several months the VIMBO opportunity appeared to be the most appropriate route to take. We were extremely pleased with the interest shown by the second tier of management and view this as a positive step for the continued growth of our business.

Phil Reid , Mail Solutions Group Ltd