MBO at Madison

In a £26m deal, Madison has split from H Young Holdings PLC and struck out on its own. Not quite on its own, mind, its joined by Leeda, the fishing equipment part of H Young. Former Madison MD Mark Walmsley returns as Chief Operating Officer. Still at the top is Terry Bowles, now Chief Executive. He said: Current order book is substantially up on last year and the new management team is enthusiastic about the outlook for the business going forward."
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Patrick Barker, marketing manager at Madison, entitled his press release on the MBO Independence Day!

Heres his release in full:

Madison Management strikes a deal with H Young Holdings PLC to regain independence.

Madison and Leeda, the leading distributors in cycling and fishing equipment were both acquired today via a £26 million MBO led by Lloyds TSB Development Capital ( LDC). In acquiring the businesses from H Young Holdings PLC, the management team, led by Terry Bowles, believe the new company will thrive as a specialist distributor in the private sector.

Operating out of a purpose built 50,000 square feet distribution and training centre in Milton Keynes, Madison has a commanding market position in the UK cycle parts and accessories market, with an estimated market share more than twice the size of its nearest competitor and growing. The company boasts a unique portfolio of major global brands including Shimano for component parts and shoes, Bell for helmets and accessories, Rock Shox for suspension forks, as well as its own popular Ridgeback bicycle brand.

Attuned to the current trends in demographics along with the rapidly expanding commuter and utility markets, driven by environmental, health and transport issues, management has identified compelling new business opportunities for the new company distributing motorcycle parts and accessories and electric powered scooters and bicycles.

Within the UK fishing tackle market, Leeda, based in Redditch has a commendable 25% market share and this is also growing year on year. The company through its Ultimate Tackle Directory has developed a unique marketing and service support programme for its independent dealers that is the envy of all of its competitors. The UTD programme has been modeled to provide independent dealers with more powerful local marketing, product development and customer support services to make their businesses more profitable. CEO Terry Bowles enthuses : " Our business relies heavily on the goodwill and support of our many independent customers. We recognise the strategic importance of creating added value in our service offering and thats why we invest in training, good stock levels, fast order turnaround time, strong marketing programmes and important customer service issues such as spare parts to reinforce the message that we genuinely care about their well being." One of the benefits of bringing together these two businesses is the opportunity to refine best practice in the development of a tailored service support package for specialist independent retailers.

The service standards of both Madison and Leeda are industry leading with next day nationwide delivery standard over both businesses and high order fulfilment a cornerstone. Madison through its sponsorship of the Association of Cycle Traders has been able to influence and strengthen retail support services along with technical training to the benefit of its customers. The new company trading as Madison Operations Limited envisages the same dealer benefits and service support programmes can be extended to more sectors, including motorcycle.

Three of the MBO team, namely Terry Bowles, Chief Executive Officer, Mark Walmsley, Chief Operating Officer and Dominic Langan, Commercial Director have between them 35 years of experience within the cycle industry. The fourth member of the team, Alan McIvor, Finance Director, was previously with the vendor H.Young Holdings PLC. Together they form a formidable team with a wealth of experience and outstanding track record.

Commenting on the deal, Chief Executive Terry Bowles observed: " With both businesses in such a strong strategic position within their respective markets and new business opportunities already in place, there is significant scope to enhance earnings. Current order book is substantially up on last year and the new management team is enthusiastic about the outlook for the business going forward."

Julian Carr, Senior Director, LDC said: "LDC believe that the new company will be a strong player in the leisure accessories market place. Both companies have significant customer relationships and quality brand portfolios. The management team has an enviable track record, with enormous experience in the sector and in both businesses. We are confident that the new company will go from strength to strength and we look forward to working with the management team to support that growth."

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