Maven backs MBO of SPS from 4imprint
Maven has led the £7.25m management buyout of SPS from 4imprint Group plc. Blackpool-based SPS is a market-leading supplier in the promotional merchandise market, with over twenty years’ operating history. With current turnover of £17m million the business has experienced excellent growth over recent years, stemming largely from its focus on new product development, innovative product sourcing, investment in branding technology and a commitment to operational and service excellence.
SPS is the UK’s largest provider of promotional merchandise, supplying to over 2000 independent distributors in the UK and Europe. Employing more than 200 people, the business operates out of a modern 90,000 sq ft site with manufacturing, branding and storage facilities. There is clear scope for SPS to capitalise on their market leading position, and the management team, led by CEO Philip Morgan, have a well-defined strategy to continue to grow the business both organically and by acquisition.
The UK promotional merchandise market is worth over £760 million per year, and the business is well placed to take advantage of increasing demand for their products as advertising budgets increase due to improving market conditions. Maven’s investment will assist the management team in the delivery of their growth strategy, which includes further product development, expanding the existing sales channels to have a greater focus in Europe and the UK retail market, and setting up new license and distribution agreements with key strategic partners.
Ryan Bevington, Investment Director at Maven, said: “The team at SPS have delivered strong growth in a fairly benign market over recent years, and they have continued to invest in new product development and manufacturing ability over that period. We were very impressed with the management team and their growth strategy for the business, and we are confident that they will continue to drive the business forward successfully.”
Philip Morgan, CEO at SPS commented: “We are extremely pleased to have completed the management buy-out of SPS from 4imprint Group plc. We have a professional, dedicated and innovative team who are passionate about the success of the company, and we are delighted to have found a supportive financial partner in Maven Capital Partners. With their financial backing and experience we believe that we can achieve our aspirations for the business over the next five years. We are confident that SPS is in a fantastic position for continued growth in the promotional merchandise market, with ongoing innovation and development across the whole business, and we look forward to building on the foundations we have laid over the last few years.”