The Business
Master Removers Group provides specialist and extremely well-regarded logistics, storage and removals services to international businesses and domestic consumers alike. Its iconic Aussie Man & Van and Anthony Ward Thomas brands are well known across London, with MRG counting Cate Blanchett, Orlando Bloom and the Archbishop of Canterbury as clients.
The Deal
We invested £7.2 million in MRG in December 2014 to support an equity release for the shareholders of the business. Our funding was provided as a combined debt and equity package. Management was attracted to us as high levels of rollover and strong fixed asset cover enabled us to construct a deal that saw them retain a majority stake in the business post completion. Extremely strong cash generation at MRG enabled the entirety of our loan stock to be repaid in January 2016 and dividend payments to commence just 13 months after the original buyout.
The Plan
MRG is run by a high-quality management team with strong operational capabilities and a proven track record in making astute, add-on acquisitions, the latter of which was a key component of the strategy adopted for the group post completion. Since our investment, MRG has made five acquisitions to accelerate its expansion outside London and into the West of England. Taken together, the business has increased utilisation of its warehouse, vehicle and labour resources in turn increasing its turnover, profitability and cash generation substantially since the investment was made.
