BOLTON, England, April 9 /PRNewswire/ --
- With Photo
Cash Generator Holdings Limited ("CGHL"), a new company, has today acquired Cash Generator Limited ("Cash Generator") from its founder and owner Brian Lewis. Brian will retain a substantial shareholding in the new company as he has tremendous confidence in the future growth of the business.
Cash Generator was founded in 1994 and is one of the UK's most successful "Buy and Sell and Loan" store concepts with a highly respected brand, widely recognised throughout the UK.
Cash Generator is a modern high street discount retailer and instant cash provider to the local community operating from 13 company owned stores and a network of 60 franchise stores across the UK.
CGHL was set up by Stephen Altman and Nigel Berger, founders of New World Corporate Finance Limited, a UK M&A boutique. Stephen and Nigel together with the Cash Generator management team successfully structured a transaction to buy the company from Brian. The transaction was funded through a combination of a private placement, led by Stephen and Nigel, investment by the management team resulting in their becoming significant shareholders in the business and bank debt provided by Barclays Bank Plc.
Julian Urry, Managing Director of Cash Generator, commented:
"We see this transaction as an exciting and positive step in the development of the business. Stephen and Nigel have been aware of the company for a number of years and see the full potential of the business.
During the recent past they have provided excellent support and advice which has resulted in the completion of the purchase. They clearly have a firm understanding of the complexities that arise in these types of transactions and were able to both structure and finance the deal. Their entrepreneurial, solution driven approach will ensure that we are now well positioned to achieve all of our financial, commercial and strategic objectives."
Julian further commented that the challenging economic conditions are ideal for Cash Generator which is enjoying unprecedented sustained growth in all income streams. "The buying and selling of second-hand goods is incredibly popular with the public and this, combined with our range of Instant Cash financial services, provides a range of products that are enjoyed by many thousands of customers every week."
Cash Generator plans to significantly increase its store openings and aims to have over 160 outlets within the next 5 years. Julian advised that this would be achieved through continued franchising activity combined with the plan to open a significant number of corporate stores.
Stephen Altman said:
"The transaction generated significant interest amongst private investors and is a testament to the excellent opportunity that exists in the UK for Cash Generator to build significantly on its existing position as a leading UK discount retailer.
With a strong management team in place Cash Generator is now ideally poised to take advantage of the current economic environment through growth from its existing stores and the roll-out of both new company owned and franchise stores."
Note for Editors:
Legal advice was provided by Ian Brent, Steven Raize and John Burnand of Halliwells London.
Brian Lewis was advised by Robert Street and Sam Mabon of Brabners Chaffe Street (Manchester).
Financial due diligence was undertaken by BDO (Manchester) led by mark Bringloe assisted Mark Lynott.
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SOURCE Cash Generator Holdings Limited