Tuesday November 16, 2021

FRP Corporate Finance leads deal to secure smooth transition to new ownership

The management team at warehouse and office interior designer and installer, Avanta UK, has acquired a stake in the business in the first stage of a two-part management buyout, in a deal supported by our Corporate Finance team.

The two main shareholders, Directors Andrew Chipp and David Beattie, say the move represents the start of their managed exit from Avanta UK by selling part of the business to the well-established management team.

Andrew and David maintain a significant minority stake and will remain at the forefront of the business for the medium term, working alongside the five-strong management team who have invested in the business.

Our Corporate Finance team, including Gary Hyem, Fahim Kassam and Matt Field, acted for the shareholders.

Gary Hyem, Director at FRP Corporate Finance, said: “This is a deal which allows the shareholders to realise part of the value that they’ve created over the last 20 years as they work towards their ultimate retirement. Andrew and David were keen to pass the business on to their trusted colleagues in order to maintain the culture and core values of the company, and this is exactly the type of deal that enables that to happen.

“This type of deal is proving increasingly popular given the shareholders ability to maintain control. Not only does this reduce risk, it provides security for customers and employees, and we’re currently supporting many owner managers and shareholders to realise value from their business in a similar way.”

The debt-funded deal – known as a Vendor Initiated Management Buyout (VIMBO) – was funded by a term loan and working capital facility from Virgin Money.

Andrew Chipp, Director at Avanta, said: “This deal enables the succession of the company to be passed to the management team in a way in which David and I will continue to lead the business, both in terms of our client relationships and day-to-day operations. Ultimately this means it is still business as usual and there is a bright future for all Avanta UK’s staff, customers and suppliers.”

Avanta is a leading designer and installer of tailored workspace and storage solutions, from offices and warehousing to logistics, engineering, food production, chemicals and pharma. Its clients include blue-chip household names such as Next, Jet2.com, Clipper Logistics, Johnson & Johnson, McLaren, Harrods and ASOS.

Headquartered in Leeds, Avanta operates nationally and has installation teams strategically located in key cities across the UK, including Manchester, Birmingham, London and Glasgow.

The team of advisers that supported the deal, included Lodders (legal) and FRP Corporate Finance (financial and tax) acting for the shareholders, and Browne Jacobson (legal) and Crowe UK (financial due diligence) acting for the lenders.