Brachers advise on major management investment in Offset Holdings
Brachers is pleased to announce that they have advised on the Management Investment into a shareholding of Aylesford-based Offset Holdings, incorporating Offset Packaging and Offset Productions, one of the UK’s leading independent manufacturers of retail packaging products and greetings cards.
First featured in Insider Magazine, May 2015
The transaction was lead and structured by HW Corporate Finance, who specialise in advising owner-managed businesses within the mid-market segment. Extensive capital was required to fund the investment and provide for future growth. Partial funding was provided by GE Capital through an Asset Based Lending facility against both the Account Receivables and Plant & machinery of the business, with the remainder a mix of vendor and management funding.
Edward Bone and Vince Brearey, who previously held senior directorship sales and operational roles respectively, will co-head the new group.
Offset Group is headquartered in Aylesford and provides retail and transit packaging products and greetings cards to clients including Sony Corporation, Activision, Hozelock and Pukka Tea. The group employs 67 staff and delivered an annual turnover approaching £8 million in the last financial year. The company was founded 45 years ago by Hugh Jarvis who retains a 49% stake and preference shares under the terms of the deal.
Hugh Jarvis, Chairman of Offset Group, says:
“I am grateful to Brachers, HW Corporate Finance and ASB Law who all worked to ensure this deal completed to an ambitious timetable. When I started this business with my father we wanted to create a thriving business which provided long-term security for employees, and I am extremely proud that the business will continue to thrive under the expert leadership of Edward and Vince.”
Charles Whelan, Managing Partner, HW Corporate Finance said: “We have worked with Hugh, Edward and Vince over a couple of years to shape this excellent business for management investment. With the funding we arranged through GE Capital, Hugh has managed to secure continuity for the business whilst providing existing senior directors with the opportunity to take Offset to new heights.”
Matthew Simmonds, Partner at Brachers:
“This is a fantastic deal for Hugh, who took a real risk when starting this business and worked very hard to successfully develop it into its status as a major employer in Kent for decades. We are particularly pleased that his loyalty and dedication to this has been realised. We’ll watch the next stage of the business’s development with interest and we hope to play an ongoing role in its longer term strategy.”
Alan Austin, National Sales Leader, GE Capital says: “This is a prime example of where an ABL facility can be used to finance a transaction, providing the finance to continue to drive a very successful business forward. Offset are typical of a growing number of businesses, who are leading their chosen field and want to capitalise on the strengthening projections of the UK economy”.