2,400 managers and employees have participated in the £170m buyout of Palmer & Harvey McLance Holdings Ltd, taking control of a stake of almost 25 per cent in the wholesale and distribution business.
The management team, led by P&H chairman Christopher Adams, opted to go without an external equity provider to finance the deal. Close Brothers Corporate Finance advised the buyout team to go for a debt package instead. The financing was arranged by Barclays Bank and Burdale Financial.
In addition to the £170m required to buy the business, £110m of working capital is being made available to the company. £160m of the total funding will be raised from a syndicated asset-backed facility.
P&H, which has 4,100 staff, distributes alcohol, snacks, soft drinks and sweets to retailers in the UK. In its previous financial year, the company generated a profit of £28m on revenue of £3.2bn.