NorthEdge Capital backs MBO of Ramsdens Financial Ltd

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Private equity firm, NorthEdge Capital, has backed a management buyout of Ramsdens Financial Ltd, the UK’s largest independent pawnbroker.

We helped NorthEdge on both the acquisition and its investment into Ramsdens. This was initiated after owner and chairman of Ramsdens, Stewart Smith, agreed to the buyout following his decision to retire.

The NorthEdge investment will now allow the pawnbroker group to further develop its store portfolio, and expand and grow its core products. Founded in Coulby Newham, Middlesbrough in 1987, Ramsdens currently employs 450 people at more than 120 branches across the North East, Yorkshire, Scotland and Wales. They had a turnover of £40m in 2013.

James Hall, director at NorthEdge, said: “Craig and his team worked very hard to get the Ramsdens deal over the line. They provided us with clear, pragmatic and commercial advice throughout the process and gave us complete confidence that they were on top of all the issues. We were particularly impressed by the way that they brought all the disciplines together to provide the Newco and NorthEdge with a seamless solution. We would not hesitate in using Muckle again and recommending them to others.”

The management buyout was led for Northedge by our Corporate Partner, Craig Swinhoe, involving, at times, ten lawyers across the firm, including Amy Wanless and Matthew Walsh. Craig said: “We are delighted to have worked closely with NorthEdge on their eighth investment in the last 18 months. This transaction will be the start of another exciting phase of development for Ramsdens. The deal was a fantastic one to be involved in.”

Peter Kenyon, Chief Executive of Ramsdens, said: “Andy and James of NorthEdge have been easy and straightforward to deal with from the outset.  They both understand what Ramsdens is trying to achieve and how we meet the needs of our customers.  We look forward to taking Ramsdens on to the next stage of its development as we see good growth potential in our target markets.”

The investment follows a number of other significant private equity deals completed by our team in the past year, including Kavli, Winns Solicitors, It’s All Good and Hastie Burton Joinery.

We worked on a private equity investment for Winns Solicitors involving £40m private equity deal, releasing significant cash for shareholders, but also a fund to make acquisitions in the future. We also helped Kavli UK, best-known for its Primula cheese brand, to acquire St. Helen’s Farm in Yorkshire. They have advised tortilla chips manufacturer, It’s All Good, on its investment from NVM Private Equity to enable the business to upgrade and expand its manufacturing capabilities.

For more information, help and advice please contact Craig Swinhoe on 0191 211 7945.