TeamSport Racing Limited Involved in £9m Management Buy-out
TeamSport today announce that it has completed the £9m management buy-out of TeamSport Racing Limited, the largest operator of go kart tracks in Europe.
Connection Capital introduced and invested alongside Neil Taylor, co founder of computer game retailer GAME, in the deal, which was completed in February 2013. Taylor and his team grew GAME into a successful company prior to taking it public on the UK Stock Exchange and selling it in 1999 to its rival retailer Eletronics Boutique for £99m.
TeamSport is a highly profitable and rapidly growing leisure sector business. Founded in 1990 by Paul Wrightman, who alongside managing director Dominic Gaynor, has grown the business steadily to nine venues across the UK. The deal provides an exit for Wrightman although he will remain involved with the business in a non-executive capacity.
As part of the funding package, TeamSport also received an element of growth capital which will assist the plans for expansion over the next five years. The management team led by Gaynor will focus on growing the business, aiming to have at least 16 sites by 2016.
Connection Capital is a private client investment business which allows individuals to build a broad portfolio of direct private equity investments. Clients have the ability to invest on a deal by basis as part of an organised syndicate. The firm has over £135 million of funds under management.
As part of the transaction, BLME (Bank of London and The Middle East Plc) provided bank debt. BLME is an FSA authorised, independent UK, wholesale bank based in London.
Bank Debt Providers
Jervis Rhodes, Head of Corporate Banking, commented:
“TeamSport Racing Limited the first management buyout transaction for the newly established acquisition finance team at BLME and the first Islamic Finance MBO transaction in Western Europe for many years. The BLME Acquisition Finance team is focussed on mid market transactions between £3 and £20 million and is delighted to support such a high quality investor group as Connection Capital and management.”
Financial Adviser to the Purchaser/Management Team
John Lucas, Partner commented:
“We were delighted to act as lead advisers to Dominic and his team in this management buy out. It demonstrates that despite a difficult funding market, transactions can be successful for the right business. TeamSport offers a quality product in a competitive sector and has huge potential. We now look forward to working with the management team to capitalise on opportunities identified, and also with Connection Capital who are well placed to provide finance and expertise to help the business grow over the coming years.”