Two directors with more than 20 years combined experience at a Kent-based bathroom and kitchen distributor have bought the company for an undisclosed sum.
Two directors with more than 20 years combined experience at a Kent-based bathroom and kitchen distributor have bought the company for an undisclosed sum.
James Theobald Ltd is now under the ownership of commercial director James Gardiner and head of sales Steve Brooks. Gardiner and Brooks are now joint managing directors following the completion of the deal.
The company, which trades as Theobalds supplies kitchens and bathrooms to trade customers and property developers, was sold by James and Wilhelmina Theobald, who established the business some 30 years ago.
Gardiner and Brooks said in a statement: “We are both delighted to have secured this exciting business acquisition and look forward, along with Theobald’s team, to continue building upon the success of the brand. It is very much business as usual and we are both committed to developing the brand heritage of Theobald’s for many years to come.”
The transaction was funded by debt provided by Clydesdale Bank’s Specialist & Acquisition Finance team.
Clydesdale’s funding was arranged by Paul Marshall and Colin Weightman, along with Paul Saunders and Martin White at its Financial Solutions Centre in Maidstone.
The bank was introduced to the deal by Paul Hughes at BDO Corporate Finance in Guildford.
“The MBO team chose to work with Clydesdale on the basis of the relationship built up with Paul Saunders’ team, and the level of interest shown by Specialist & Acquisition Finance,” Marshall said.
The buy-out team’s legal adviser was Brachers, led by head of corporate/commercial Keith McAlister, who was assisted by associate Claire Williams. Partner Ash Jilani advised on the commercial property issues.
McAlister said most of the advisers on the transaction were based in Maidstone and the southeast and the familiarity between the advisers ensured an amicable deal.
“The management team had worked for the company for a number of years and were existing directors at the time of the MBO, so their wealth of experience in the kitchen and bathroom industry together with their in-depth knowledge of the company’s operations sees them in good shape to take the company forward to future success,” he added.
The vendors were advised on the legal issues surrounding their disposal by Whitehead Monckton, led by head of commercial Robert Coombe. The firm’s team included partner Janet Goode and senior solicitor Haggai Peri.
Goode said the firm has advised the vendors for several years. “James Theobald was a family company and, while this MBO was a commercial deal, the friendship between the parties meant that they were able to agree terms quickly and sensibly between themselves.
“This level of respect and plain speaking between the purchaser and vendors made for a successful transfer of ownership and a secure basis of co-operation for the company to move forward,” she added. “It was a real pleasure to work with such professional people.”
Clydesdale was advised on the legal issues of its investment by Brown Rudnick Berlack Israels LLP, which is one of the bank’s panel law firms and regularly advises on mid-market M&A deals.
Its team comprised partners Matthew Sillett and Neil Pigott as well as associate Francine Naidoo.
Sillett said the deal was funded as a debt only buy-out. “We recently have worked with the bank on a number of MBO deals structured in this way. Where appropriate it is a very efficient means of funding an MBO and avoids the additional layer of negotiation that comes with involving an external equity investor.”
James Theobald is headquartered in Maidstone, employing more than 50 staff. It has developed into a successful distribution business, with a number of established brands in its portfolio include Matchmaker kitchens, Butler appliances and more recently Brompton Bathrooms.
