Brownhills secondary buyout

The secondary buyout of Brownhills, the UK’s largest retailer of motorhomes, has provided Royal Bank Development Capital with an exit from its 1999 investment. NBGI Private Equity backed the £32 million buyout of the company.

Brownhills sells motorhome brands such as Hymer, Swift, Auto-Trail, Rapido and Explorer. The company plans to sell 3,000 vehicles this year. Under RBDCs ownership turnover has grown from £38 million to over £89 million. Brownhills, founded in 1978, now employs 245 staff in Newark, Preston and Cannock. The market for motorhomes has grown by over 70 per cent in the last seven years.

Royal Bank Development Capital acquired Brownhills in a £15 million deal from the company’s founder, Roger Price. Mike Griffiths led the MBO. Shortly after the transaction was competed the company bought a rival firm, Madisons of Blackpool, from its private owners. John Woollatt, former chief executive of the Perry Group, now replaces Mike Griffiths as chief executive of Brownhills.

Bank of Scotland Corporate Banking provided senior and mezzanine debt for the second buyout, whilst Capital Bank provided stocking facilities. Pinsent Curtis Biddle (legal) and KPMG (corporate finance) advised the vendors. NBGI was advised by Macfarlanes, (legal), KPMG (due diligence), LEK Consulting (commercial due diligence) and Alaco (management due diligence). Addleshaw Booth & Co advised Bank of Scotland on legal matters and Speechly Bircham advised management.