Northern private equity firm NorthEdge Capital has backed a management buyout of Ramsdens Financial Ltd, which operates branches across the North East.
Ramsdens’ owner and chairman, Stewart Smith, agreed to the buyout following his decision to retire from the £40m turnover pawnbroking business.
North East law firm Muckle LLP advised NorthEdge, who were also behind a £25.5m investment into Teesside chemicals firm Fine Industries Limited, on the acquisition and investment into Ramsdens.
The undisclosed deal will now prepare Ramsdens to expand its store network and grow its product line.
Middlesbrough-based Ramsdens was founded in 1987 and currently employs 450 people across more than 120 branches in the North East, Yorkshire, Scotland and Wales.
Muckle LLP partner Craig Swinhoe led the management buyout for NorthEdge. The deal required, at times, ten lawyers in the firm’s Corporate Team.
Mr Swinhoe said: “We are delighted to have worked closely with NorthEdge on their eighth investment in the last 18 months. This transaction will be the start of another exciting phase of development for Ramsdens. The deal was a fantastic one to be involved in.”
Peter Kenyon, chief executive of Ramsdens, added: “We look forward to taking Ramsdens on to the next stage of its development as we see good growth potential in our target markets.”
James Hall, director at NorthEdge, said: “Craig and his team worked very hard to get the Ramsdens deal over the line. They provided us with clear, pragmatic and commercial advice throughout the process and gave us complete confidence that they were on top of all the issues.
“We were particularly impressed by the way that they brought all the disciplines together to provide the Newco and NorthEdge with a seamless solution. We would not hesitate in using Muckle again and recommending them to others.”
The investment follows a number of other significant private equity deals completed by Muckle LLP in the past year, including Kavli, Winns Solicitors, It’s All Good and Hastie Burton Joinery.