Mode Print Solutions gets private investment backing for MBO

Mode Print Solutions has gained the backing of private investors to support an MBO that should support the next stage of its growth.

Connection Capital has put up £8.1m as part of a £20.5m MBO package that also comes with debt facilities of £11m provided by Clydesdale Bank.

Mode Print Solutions operates in the London and South East selling into SMEs with a customer base that is 700 plus strong with the vast majority on long-term contracts.

The firm was established in 1995 and net earnings have increased from £415,000 five years ago to hit £3.6m last year under the leadership of CEO Robert Clarke. One of the innovations that he also saw introduced were simple 5-year contracts and a commitment to high levels of service with engineers covering London and the South East.

As part of the deal with the private investors Richard Cottrell, a Connection Capital investor client, will become non-executive chairman of the print management specuialust. He has experience of MBOs and has held senior roles at major print service operations.

Miles Otway, partner at Connection Capital, said that Mode ricked a lot of the boxes that it looked for in an investment target. "It’s a fast-growing, high-margin, very well-run business led by an impressive CEO, with real upside potential in a market with strong dynamics. It’s no wonder it was such a hit with our clients.”

“The existing management team has done an excellent job of professionalising the business: winning sales by training its team with rigour, retaining customers through a differentiated and straightforward standard contract, and securing a high proportion of renewals through exceptional customer care," he added.

Mode has welcomed the involvement of Connection Capital not only because of the finance but also the access to Cottrell's input.

“This is a very exciting moment for us – we have put so much into growing our business over the last five years and with Connection Capital’s backing we have good grounds to achieve our ambitions for the next five and beyond," said Clarke.