Wragge & Co advises on £36 million management buy-out

Wragge & Co's Banking and Finance team has advised new client Argent Group Europe Limited (AGEL) on its £36 million management buy-out (MBO) by Fletcher Bay Investment Company Limited (FBIC).

The MBO involved FBIC acquiring the whole of the issued share capital of AGEL, a £450 million turnover investment company which owns a number of businesses in the food sector. Funded by Lloyds TSB Bank plc and Lloyd TSB Commercial Finance Limited, the deal has enabled private equity partner Cinven to exit the business.

Banking and finance partner Paula Laird and director Edward Sunderland advised on the financing of the MBO. They worked closely with AGEL finance director Andy Barnes.

Andy Barnes said:  "Wragge & Co provided excellent advice and support in negotiating a debt package, listening to and understanding our needs while making constructive suggestions to ensure we ultimately arrived at an agreement that was acceptable to both the bank and ourselves."

Paula Laird said: "This complex deal comprised a number of financial structures, including acquisition finance and working capital facilities to fund the management buy-out. Taking a commercial approach, we put in place the right structure which not only met our client's objectives, but also delivered a favourable outcome for the other parties involved."

AGEL was originally formed in conjunction with private equity partners Cinven and co- founder Andy Hunter to purchase a number of assets from Hillsdown Holdings Plc. CMS Cameron McKenna acted for Lloyds Banking Group, Solomon Taylor & Shaw advised Argent on corporate issues and Ashurt advised Cinven.

Wragge & Co's Banking & Finance team offers a partner-led service on UK and cross-border acquisition, debt and leveraged finance deals for lenders and borrowers. Bringing a commercial and pragmatic approach to deals, the team advises banks, corporates, private equity companies and public bodies.

Highlights include advising US-based investors on a $200 million privately placed note issue for UK housing association Places for People Homes.