Merging in a 30 June deal, digital and design specialist Set and Match took on litho firm Colprint’s assets, staff and business.
The MBO and merger will go a long way to securing Set and Match’s future, Mills told Printweek.
In early 2024, he and the other two directors, Philip Reely and Andrew Harper, began talks over the future of the group: it became apparent that with just nine staff, three of whom were directors, the group might benefit from an MBO and consolidation under a single director.
Mills, who was managing director of Colprint at the time, said: “The way the businesses have changed over the past few years, we just got to the point where it wasn’t going to be viable to keep the two businesses separate, with three directors.
“We wanted to futureproof the business, and it needed fewer chiefs. So we sat down, considered our options: an MBO was one of them. The other two directors weren’t particularly interested, but were amenable to me doing it, so I looked into finance.”
The £140,000 asset-based lending (ABL) buyout deal, formed of a £70,000 invoice finance facility and a £70,000 secured loan, saw Mills become the sole shareholder of the two firms, which combined will turn over around £650,000 annually.
ABLs are an unusual method for buyouts of small businesses, typically reserved for larger deals, according to Rob Walters, business development manager at Time Finance, which provided the facility and loan.
He said: “When we were introduced to Stuart, there was an assumption that to complete his buyout he would simply need a loan due to the size of his business. ABL is a solution that SMEs don’t explore because so many traditional lenders only package this form of funding in much larger sums.
“We break that mould at Time Finance; we are always looking to tailor our solutions to business needs. We can structure ABL deals from £25,000 to £3.5m and that gives small businesses scope to explore other options outside of more traditional forms of finance such as loans.”
Paul Varley, managing director of Navigate Commercial Finance, which assisted in the deal, added: “I’m delighted to have played a part in supporting Stuart and Set & Match with their next phase of growth. A well-run progressive business that can now kick on under Stuart’s ownership supported by the right funding partner in Time Finance.”
Under Mills, Set and Match’s digital Xerox operations now officially work side-by-side with Colprint’s litho kit – a Heidelberg Printmaster B3 five-colour and a Hans Gronhi two-colour press – though the kit has stayed in place, as both already worked under one roof.
The main challenge of the merger has been putting both firms on a single MIS, though this has itself been made easier by the fact both used PrintLogic.
“From an admin point of view, it’s been a busy six weeks – but it’s been good. I’m looking forward to the future,” Mills said.
