Mezzanine specialist Intermediate Capital Group has provided both equity and mezzanine debt to fund a management buyout of Marken, a pharmaceutical logistics company previously owned by FTSE 100-listed 3i. Terms were undisclosed.
Management will take a majority stake in the company. The logistics company is growing rapidly on the back of strong demand in the US and Europe, ICG said in a statement.
Steven Clarke, head of ICG UK, said: “We have bought a significant minority stake. It is currently a very interesting point in the market. We will expect transactions to be priced differently and we are hoping the tide will turns towards us as other players in the debt market avoid the space.” Clarke said he expected dealflow to be “deathly quiet” in August.
The deal represents a quick flip for 3i, who backed a management buyout of Marken only last year.
The Marken deal was underwritten a month ago by Lloyds TSB. Clarke said it was unlikely any bank will underwrite deals this week due to the continual decline in the debt markets.