Arthouse MBO is a good result for team Newcastle

Nov 14 2007 by Iain Laing, The Journal

A TEAM of dealmakers from Newcastle have advised on a management buy-out for one of the UK’s leading wallcovering firms.

Corporate financiers and lawyers from Deloitte, BTG McInnes, Dickinson Dees and Ward Hadaway acted for both the vendors and buyers of Arthouse, the UK’s second largest supplier of wallcoverings to the DIY sector.

Glitnir Total Capital, a division of the Nordic investment bank Glitnir, financed the deal.

Tom Fitzpatrick and Jamie Pass of Dickinson Dees advised the sellers, while Julie Harrison and Katherine Hay-Heddle of Ward Hadaway gave management legal advice.

The company and vendor were all based in Lancashire, but opted to use a raft of Newcastle advisers to deliver the MBO of the £16m turnover company.

Shawn Bone, partner at BTG McInnes said; “We have known the business and its owners for some years and we were well-placed to deliver an integrated finance solution into the deal.

“It was even more pleasing that we got to work with so many familiar Newcastle faces. ”

Paul Kaiser of Deloitte added; “Deloitte were appointed by the Vendors in late 2006 to advise them of the options for a sale of their business.

“Their choice of advisers outside their home region is not as unusual as it sounds in that many owners prefer the added confidentiality while they explore their options.

“What is more unusual is the extent to which advisory services were provided from this region, but it was a logical step to work with other advisers from here, not least to demonstrate the quality and ability of the North-East’s professional services firms,” added Mr Kaiser.