A management team of Jody Allan, Wayne Barry and Paul Chambers have completed the buy-out of Driffield-based mail order company Kingstown Associates Limited from Nigel Mellor and David Whittle.
Kingstown is a leading UK mail order company, which owns a number of lifestyle brands predominantly aimed at the over 60’s. The company, which last year reported a turnover of around £18m, also provides bespoke fulfilment services to third party clients, as well as international buying, design, photography, print and distribution services.
Under the transaction structure, David Whittle will retire from the business and Nigel Mellor will continue in the role of Managing Director to support the management team.
Steve Hubbard, Adam Fearnley and James Atkinson from RSM’s corporate finance team in Yorkshire advised the vendors on the transaction while Clarion acted as their legal advisers.
The funding for the MBO was provided by HSBC who received legal advice from Bond Dickinson while Shulmans acted for the new management team.
Nigel Mellor, Kingstown Associates managing director, said: “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.”
Steve Hubbard, corporate finance director at RSM, said: “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.”