Fone Logistics, one of the UK's largest distributors of mobile phones, mobile phone connections and mobile call airtime, was advised on a Management Buy-In by Sheffield based Castle Square Corporate Finance. Director, Kevan Shaw provided lead advisory services to the Buy-In Team and led on the deal negotiations and the fundraising process.
The team comprised of Ian Gillespie, who sold a controlling stake, but retained a 33% interest and stays on as Managing Director along with Gary Fawcett and Mike Bower, who have great expertise and experience within the sector, Gary Fawcett also being major shareholder and Managing Director of West Yorkshire based Link Telecom Holdings – a £20 million turnover provider of telecom solutions to businesses.
Fone Logistics achieved sales of £71 million last year and should surpass that with a figure in excess of £85 million in the current year. The company is one of only two distributors who have contracts to supply on behalf of all five major UK mobile phone networks. This was a complex deal because of the dynamic telecoms sector in which the target company operated, combined with the complex nature of its operations.
The deal was funded with the backing of Tom Pryor and the structured debt team at Lloyds, with legal advice provided to the Buy-In team by Richard May and the team at DLA.
