Corporate Finance – Card deal for buy-in team.

Deloitte & Touche Corporate Finance acted as one of the lead advisers in the recent #108m management buy-in of Clydesdale Financial Services, the consumer credit division of Next.

The MBI was led by Bob Jones, former chief executive of Lombard Tricity Finance, responsible for its transformation from huge losses to profitability in two years back in the 1990s.

The MBI team, backed by Barclays Private Equity, paid #90m for the business with an extra #18m funding for expansion plans. The company provides store cards and interest free credit to retailers such as World of Leather, fashion store Karen Millen and Focus DIY.

Jones said: ‘This company is the perfect platform for an MBI team to develop a substantial and profitable business in the point of sale sector.’ He added: ‘We intend to grow Clydesdale substantially in its present market place but also have plans for the support of retail sales over the internet.’

Jones will be working with Craig Murray, who remains as managing director and Richard Banks, former finance director of Lombard Tricity Finance.

After the Lombard turnaround Jones led a management buy-in at Warrior, the armed forces financial services business which was part of NAAFI.

Chris Ward, the D&T partner who advised the MBI team, said: ‘This second buy-in makes Bob Jones a serial entrepreneur and shows that a sector focus is a key success factor for buy-in teams.’

Barclays Private Equity invested #25.5m with a further #70m of securitisation and working capital provided by the Bank of America. Intermediate Capital Group funded #12.5m of mezzanine finance.

Separately, KPMG Corporate Finance advised on the management buy-out of Raytheon Recreational Marine Products from its parent company in a deal valued at $108m (#72m).

Based in Portsmouth, the company, renamed Raymarine, supplies electronics such as radar, autopilots and navigation systems. Last year the company had a turnover of $141m, two-thirds of sales coming from the US market.

Rick Kane, the managing director of Raymarine, said: ‘We have a strong market position, a diverse product range and will remain focused on delivering innovative products and technology to boaters around the world.’

The KPMG team was led by Anthony Vickery, based in the firm’s Southampton office.

He said: ‘The Recreational Marine buy-out combines one of the strongest management teams in the industry with a high quality market leading business and I expect to see significant developments in the business over the next few years.’

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