BoS backs £100m Rydon MBO

Bank of Scotland Corporate has taken a minority stake in the UK construction, development and property maintenance company.

Bank of Scotland Corporate has backed a £100 million (€145 million; $178 million) management buyout of Rydon Group, an East Sussex, UK-based construction, development and property maintenance company.
 
The integrated finance team at Bank of Scotland Corporate provided a package of approximately £100 million, comprising equity and debt. As part of the transaction, Bank of Scotland has become a minority shareholder in the business.
 
Bank of Scotland declined to comment on the amount of equity provided or the size of the stake it now holds in Rydon Group.
 
The MBO was led by Bob Bond, managing director of Rydon Construction, along with John Kitchin, group legal director, and Paul Wright, group finance director. A number of other directors within the group also invested in the deal, according to a statement. Under the new ownership, Bond becomes group CEO.
 
According to KPMG, which advised Rydon Group alongside PricewaterhouseCoopers, the MBO process began in February 2005, prompted by the decision of the previous principal shareholders to retire from the business and sell their shareholdings.
 
Formed in 1978, East Sussex-based Rydon Group funds, designs, constructs and maintains private residential, social housing commercial development and NHS health schemes throughout the south of England. The group has a turnover of £195 million and 600 employees, according to a statement.

Earlier this month, Bank of Scotland Corporate provided £43 million to fund the management buyout of Steelite International, a ceramic tableware manufacturer. In December, the integrated finance team backed John Leng & Company, a subsidiary of publishers DC Thomson & Company, in the £85 million acquisition of Puzzler Media Group from ABN AMRO Capital.