The Business
The Webb Group Limited (“Webb Group”) comprises two main trading companies, Choices UK Group Limited ("Choices UK") and Webb Ivory Burton Limited ("Webb"). Choices UK is one of the UK's largest supplier of retail home entertainment products, including games, DVDs, music and gifts. Webb is a consumer mail order business which sells a range of classic TV, film and entertainment DVDs. The businesses had a combined turnover of £53 million in the year to 31 March 2010.
The Transaction
Webb Group had been determined by Findel Plc to be non-core to its future strategy, following a significant increase in working capital requirements, driven by trade credit contracting from the home entertainment market. Endless completed the acquisition on 8 June 2010, within two weeks of agreeing heads of terms.
Value Creation
The business was in need of additional working capital facilities to fund immediate fulfilment and drive longer term growth, particularly ahead of the group’s peak seasonal trading requirements. Through the transaction, Endless has made available up to £15 million of investment and working capital moving forward. The investment will allow the business to return to offering a strong service proposition to its existing customers and will provide a platform to exploit some exciting new growth opportunities longer term.
The Endless Difference
Certainty and deliverability was of paramount importance to the vendor. Endless’ speed of execution and focused risk based approach ensured on time delivery of the agreed deal.
Testimonials
“I am delighted to be working with Endless. Their experience and focused approach will help us to deliver on our strong growth ambitions.”
Bernard Kumeta, Managing Director of the Webb Group – Jun 2010