Investee Company – Keith Prowse (UK)
Investee Company Business Type – Provides corporate hospitality services
Type of Financing – MBO
Equity Providers – Northern Venture Managers
Equity Leader (Individual) – Tim Levett
Debt Providers – Lloyds TSB Acquisition Finance
Debt Type – Term Loan
Debt Leader (Individual) – N/A
Equity Amount – £2.5 million
Total Deal Value – £6 million
Other Advisors – Nabarro Nathanson, Dickson Dees and Osbourne Clark (Legal), Deloitte & Touche (Corporate Finance)
Comments – Northern Venture Managers and Lloyds TSB Acquisition Finance have financed the £6 million management buyout of Keith Prowse, a corporate hospitality business from its parent company, Wembley PLC. The management team, led by managing director Peter Selby, received an investment of £2.5 million from Northern Venture Managers and a £2 million term loan from Lloyds TSB to support the transaction.
Keith Prowse, based in Wembley, markets and sells hospitality packages. The current management team, Peter Selby and AK Than has been running the business for the past 15 years. The company has exclusive long standing contracts at prestigious events including Wimbledon (tennis), St Andrews (golf), Cheltenham (racing) and Lords (cricket).
Tim Levett, investment director at Northern Venture Managers, commented: “I was impressed by the strength and reputation of the management team. Its track record of looking after its clients and the interest of venue owners has directly resulted in securing high profile contracts. The business is in a strong position to benefit from the forecast growth in the corporate entertainment sector and is expected to take on other major events.
Peter Selby, managing director of Keith Prowse, added: “I am delighted to have completed the management buyout and secured the future of the business. Having met with several venture capital providers, I was impressed with NVM’s approach and I am confident we will have a good working relationship with Tim Levett in the coming years.”