St Martin Vintners, an independent wine specialist and importer approached Venture to secure funding for a management buy-out (MBO). Through providing a funding package that comprised Confidential Invoice Discounting, Stock and Cashflow Loans, Venture enabled the company to fulfil its business ambitions.
St Martin Vintners is an independent wine wholesaler which has served the licensed trade and corporate hospitality sector for 25 years. The company also operates a retail outlet in Brighton and runs the highly successful Sussex Wine Club, which has approximately 150 members.
When the founder of St Martin Vintners, Martin Sneath, announced his retirement plans the wheels were set in motion for Andy Rice and Gary Jenner – both long-term
employees of the company – to continue the legacy. The key to this was not selling the well-respected company with a solid 25-year history, to one of the bigger industry players. Andy and Gary undertook a management buy-out (MBO) of the wine wholesaler but needed to raise the finance to support it.
In order to successfully underpin the MBO, Andy and Gary required greater funding than would normally be available through a traditional bank or invoice finance facility. They approached Venture, who took the right time to study the business, reaching a real understanding of how it worked, and structured a deal.
Impressed with the management team’s plans, Venture recognised that the business had both great potential and held an unusual and valuable stock in the form of fine wine. This was instrumental in the decision to channel a significant proportion of the funding through a Stock Loan which grows in proportion to the amount of fine wine held.
The final funding package comprised, Confidential Invoice Discounting, Stock and Cashflow Loans and ultimately delivered the funding levels required. The complex deal was developed in conjunction with advisors including Spofforths LLP, Chartered Accountants and Howlett Clarke solicitors.
"We knew Invoice Discounting was an option but Venture’s flexibility in releasing funds through a Stock Loan meant we were able to secure a better funding package and generate sufficient capital to not only underpin the MBO, but also to make significant improvements
to the business."
St Martin Vintners have gone on to make significant process changes following the deal including implementing a new credit control system to make the most of the funding facilities. With Venture’s support it has been able to raise the profile of the company through replacing delivery vehicles, investing in livery, building a new e-commerce website and reviewing the product range.
Andy, co-Director of St Martin Vintners, comments: “Not only has Venture helped us with the original MBO, but the funding package they delivered has meant we improved the business as well. And on top of that, we retained our customers and bolstered staff morale, which is some achievement.”
Andy and Gary are an ambitious pair, and have many plans for the future as Gary, explains: “The MBO has given us a deeper view of what business is about and we have carte blanche to put our mark on things. We are expanding geographically with a new rep in South London; the potential for growth there is phenomenal. There is also a new retail project in the pipeline, which will have a real wow factor.”
“We are hoping the funding for our future plans will come from business
growth and with our facility we have finance that will grow with the business.”
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