Playforce (United Kingdom) - Jan 2008

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01 January 2008

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ISIS Equity Partners has invested £4.2m to facilitate the £7m management buyout of playground supplier Playforce. ISIS invested funds from its Baronsmead VCTs alongside a debt package provided by HSBC. The deal enabled the founder managers of Playforce to reduce their shareholding in the business with ISIS taking a 44% stake in the newco. The transaction was sourced off-market by ISIS which had met the founders at an event in the South West and then continued to track the company for two years. ISIS was attracted to the company as it has demonstrated fast growth in the past and the recognition from the Government and local authorities as to the importance of play as key to children’s development and in countering concerns about obesity as outlined by the Government’s Children’s Plan announced in December 2007.

Company

Based in Holt, Wiltshire, Playforce is a provider of children’s play areas to schools. It was founded in 1998 with a £5,000 Princes Trust Loan. Playforce offers a range of creative play equipment from ‘wobble walkways’, timber trails and climbing walls, to outdoor classrooms and shelters. All are designed to inspire children to have fun and stimulate their imagination. Playforce was recently recognised as one of the fastest growing companies in the UK in The Sunday Times Fast Track 100. Playforce generated EBIT of £1.1m on a turnover of approximately £6.4m in 2006/07. It employs 35 staff.

People

Paul Morris led the deal for ISIS and joins the board of the newco. Benoit Broch and Richard Bucknell also worked on the deal for ISIS. Geoff White joins the business as its new chairman. Edward and Rachael Webb are the co-founders of Playforce. Edward Webb continues in his role as managing director following the buyout. Kevin Beevers and Paul Crocker worked on the deal for HSBC.

Advisers

Debt - Morgan Cole, Anita John (Legal)Equity - Armstrong Transaction Services, Edward Hikmet, Tom Raymond (Commercial Due Diligence)Equity - BDO Stoy Hayward, Graham Elsworth, Laknbir Chhina, Ryan Bennett, Vinod Patel (Financial Due Diligence)Equity - CCL, Ian Ainsworth (Other Due Diligence)Equity - Olswang, Carsten Greve, Stephen Rosen (Legal)Equity - Target Corporate Finance, Jim Shaw, Matt Eves, Tom Curling (Corporate Finance)Management - Osborne Clarke, Alison Meaken, David Ferris (Legal)